FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated November  27, 2003

 

This week SBP took market by surprise and mopped up Rs. 12 billion from the system in two weeks at the cutoff yield of 2.00%. After this outflow rates touched the sky high levels and activity in overnight were seen as high as 7.45%. Market remained at the higher side for most part of the week, but after T-bill auction eased when State Bank accepted only Rs. 200 million in one year against the maturity of Rs. 22.650 billion. After this heavy inflow, overnight rates crashed and deals were executed in the band of 2.00% and 2.50%.

 

 

Initially sharp rise in all tenors was witnessed and shorter tenors of one and two weeks were the most affected, and in these tenors aggressive covering was seen at the levels of 5.50% and 6.75%, but near the end of the week rates eased and activity in the respective tenors was seen in the band of 4.00% and 4.50%. One month was the most active tenor where heavy borrowing pressure was noted due to which activity was observed as high as 4.00%, later on eased and quoted in the band of 2.50% and 2.75%. Long-term was quiet and no significant activity was witnessed in three and six months. Trading in long-term securities continued this week as well and initial activity in 06/10/03 ten year PIB took place at 6.43%, but due to the heavy selling touched the level of 6.58%, and later on as the week progressed it dipped and activity was witnessed in the band of 6.43% and 6.47%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.75

02.70

04.20%

2 Year

03.65

03.60

04.70%

3 Year

03.95

04.15

04.90%

4 Year

04.75

04.85

04.90%

5 Year

05.05

05.20

05.10%

10 Year

06.43

06.45

05.65%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Dec 24 T-Bill 03 mth. Dec 24 Dec 26
Dec 24 T-Bill 12 mth. Dec 24 Dec 26

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.15,000 Mln

Rs.4,900 Mln

Rs.200 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

01.25

07.33

02.25

1 Week

04.25

05.50

06.50

1 Month

02.75

03.25

06.20

3 Month

02.35

02.55

04.20

6 Month

02.20

02.45

03.95

1 Year

02.40

02.60

04.15

 


 

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

1 Month

03.00

03.60

05.70

2 Month

02.70

02.75

04.50

3 Month

02.30

02.60

04.00

4 Month

02.25

02.50

03.95

5 Month

02.20

02.40

03.85