FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated January  03, 2004

 

Volatility was witnessed in the interbank money market at the year end. The overnight rates maintained the downward trend for the most part of the week as the market was surplus of liquidity due to which major activity in overnight was confined in the band of 0.25% and 1.00%. But, the year end saw banks covering themselves at the higher side which was mainly due to the OMO in which State Bank mopped Rs. 17.50 billion in one week at 4.75%. This caused overnight rates to hike and closed in the band of 6.50% and 7.00%.

 

 

Sharp fall in one and two week was seen as early activity in the respective tenors was observed around 4.75% and 4.25%. Later after 31st December bids were available at 1.25% and 1.50% against the offers at 1.75% and 2.00% respectively. Rates continued to fall sharply in the term market with one month initially traded at 3.00% and later on eased with bids and offers quoted in the band of 1.70% and 2.00%. In long term three months was the most active where activity after year end was seen as low as 1.80%. Six month activity was hard to come by but bids and offers were quoted in the band of 1.70% and 2.10%. In the bond market 10 year paper of 6th October, 2003 was the most active during the week. Initial trades took place at 6.43% but later on buying pressure brought the rates down and deals were executed as low as 6.36%. Towards the end of the week, activity in 10 years PIB issue of 6th October, 2003 was witnessed at 6.52% to 6.49% but closed with bids at 6.45% against offers at 6.40%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.60

02.75

04.00%

2 Year

03.40

03.65

04.20%

3 Year

03.90

03.95

04.40%

4 Year

04.60

04.75

04.50%

5 Year

05.05

05.05

04.60%

10 Year

06.43

06.43

05.10%

 


 

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

22 Jan

83,450 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.40

01.25

07.40

1 Week

01.15

04.25

07.10

1 Month

01.60

02.75

04.35

3 Month

01.75

02.35

03.85

6 Month

01.85

02.20

03.90

1 Year

02.10

02.40

04.20

 


 

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

1 Month

02.00

03.00

04.90

2 Month

01.85

02.70

04.30

3 Month

01.80

02.30

03.80

4 Month

01.80

02.25

03.80

5 Month

01.85

02.20

03.85