FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated January  17, 2004

 

Volatility was witnessed in the interbank money market this week. Initially activity in overnight was conducted in the band of 3.50% and 4.00%. As the week progressed, due to borrowing pressure rate took a hike and at the end of the week banks had to approach SBP to cover their positions due to which discounting of around Rs. 1.30 billion was reported. As there was no indication of any intervention by the authorities, borrowing pressure was seen in one and two week, where activity was noted at the levels of 4.25% and 3.00%.

 

 

Borrowers were also seen interested to cover their positions in medium term during the week due to which bids and offers in one month was quoted in the band of 1.70% and 2.10% for most part of the week and deals were executed in the band of 1.90%. In long term market no major activity was seen. Lending pressure was witnessed in three months where few trades were witnessed around 1.70%. Aggressive buying was present in the latest ten year PIB issue of 06/10/03. Early activity in this respective paper was seen at the level of 6.38% but at the tail end of the week it touched the level of 6.34%. Buying interest was also seen in three and five year PIB where deals were struck around 3.80% and 4.85%. This week no short selling was noted in fifteen and twenty year PIB's as banks were reluctant to quote rates.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.80

02.50

03.75%

2 Year

03.25

03.00

04.15%

3 Year

03.75

03.95

04 35%

4 Year

04.70

04.65

04.50%

5 Year

04.80

04.98

04.65%

10 Year

06.34

06.35

05.35%

 


 

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

01.75

04.00

00.25

1 Week

01.63

02.00

01.50

1 Month

01.75

01.55

02.90

3 Month

01.50

01.55

03.25

6 Month

01.63

01.70

03.25

1 Year

01.98

02.20

03.45

 


 

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

1 Month

02.00

01.80

03.40

2 Month

01.75

01.70

03.20

3 Month

01.75

01.60

03.30

4 Month

01.70

01.60

03.30

5 Month

01.70

01.65

03.35