FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated November  20, 2003

 

Volatility prevailed during the week, initially trades in overnight were witnessed comparatively at the lower side but as the week progressed touched the higher levels and activity was executed around 3.75%, but at the tail end of the week market witnessed overnight activity as low as 0.75%. With the overnight rates at the higher side one and two week also saw a hike and touched the levels of 3.75% and 3.50%, but later eased and bids were quoted at 2.00% and 2.50% against the offers of 2.50% and 3.00%.

 

 

This rise in rates was apparently due to the expected outflows near to the year-end and also because that the liquidity was held only by a few banks. The one month initially traded around 2.60% at the start of the week later on was seriously hit by the prevailing conditions and deals were executed in the band of 3.25% and 3.50%, but finally eased and were struck around 2.70%. The longer tenors of three and six months also came under pressure and the sharp rise was noted. The bids for these tenors were quoted around 2.30% to 2.20% as against the offers of 2.50% to 2.35%. Uncertainty over the interest rates direction kept the bond market volatile and trading in the PIB ten years issue of 06/10/2003 in the early part of the week took place around 6.45%. But by mid of the week activity was observed around 6.30%, and later near to the end of week yields bounced back and trading was witnessed in the band of 6.42% and 6.46%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.70

02.40

04.20%

2 Year

03.60

03.20

04.65%

3 Year

04.15

03.95

04.75%

4 Year

04.85

04.40

04.75%

5 Year

05.20

05.05

05.05%

10 Year

06.45

06.30

05.70%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Dec 10 T-Bill 06 mth. Dec 10 Dec 11

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.3,000 Mln.

Rs.7,850 Mln.

Rs.500 Mln

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

01 Dec

24,400 Mln.

T-Bill

26 Dec

22,650 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

07.33

01.75

01.50

1 Week

05.50

02.50

02.00

1 Month

03.25

02.45

03.60

3 Month

02.55

02.10

03.65

6 Month

02.45

01.95

03.85

1 Year

02.60

02.25

04.20

 


 

TREASURY BILL RATES
MATURING THIS WEEK 1 WEEK AGO 1 YEAR AGO

1 Month

03.60

02.75

04.10

2 Month

02.75

02.30

03.90

3 Month

02.60

02.15

03.75

4 Month

02.50

02.10

03.85

5 Month

02.40

02.05

03.90