FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated January  10, 2004

 

Downward trend continued in inter-bank money market this week as well. As the market was surplus of liquidity, rates remained at the rock bottom levels of 0.15% and 0.25% for most part of the week. Due to the overnight rates at the lower side, one and two weeks activity was observed in the band of 0.75% and 1.25%. Rates in almost every tenor eased compared to last week, and this week's activity in one month was seen as low as 1.25%. The longer tenors of three and six months also came under pressure and sharp fall was noted with the bids for these tenors were quoted around 1.45% to 1.70% against the offers at 1.55% to 1.90%. 

 

 

This week SBP conducted six months T-bill auction and accepted total amount of Rs.8.30 billion at the cut-off yield of 1.7193% against the target of Rs. 5 billion. State Bank announced its 15 and 20 year PIB auction for Jan 19th with Settlement on Jan 20th for targets of Rs. 3 bn each. Trading in long term securities continued this week as well, and activity in latest ten year PIB was seen as high as 6.50% initially, but after the announcement of 15 and 20 year PIB auction' yields on this paper eased and activity took place as low as 6.30%. Near to the close of week, activity was witnessed in the band of 6.35% and 6.40%. Activity in 15 and 20 year PIB when issue was witnessed initially at 8.00% and 8.85%, but due to its demand trades were witnessed around 7.65% and 8.60%. Later on it bounced back to the higher side and bids were quoted at 7.80% and 8.80% against the offers at 7.70% and 8.60%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.50

02.60

04.00%

2 Year

03.00

03.40

04.20%

3 Year

03.95

03.90

04.40%

4 Year

04.65

04.60

04.50%

5 Year

04.98

05.05

04.65%

10 Year

06.35

06.43

05.20%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jan 07 T-Bill 06 mth. Jan 07 Jan 08

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.5,000 Mln

Rs.14,600 Mln

Rs.8,800 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

22 Jan

83,450 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

04.00

00.40

07.40

1 Week

02.00

01.15

06.95

1 Month

01.55

01.60

04.65

3 Month

01.55

01.75

04.05

6 Month

01.70

01.85

03.85

1 Year

02.20

02.10

04.05

 


 

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

1 Month

01.80

02.00

05.10

2 Month

01.70

01.85

04.30

3 Month

01.60

01.80

03.85

4 Month

01.60

01.80

03.75

5 Month

01.65

01.85

03.75