FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated January  31, 2004

 

No change in the inter-bank money market was witnessed and due to the excess liquidity in the system rates remained at the grass root levels. It was on Friday that the State Bank intervened in the market to suck the excess liquidity and conducted OMO in two and four weeks. The Central Bank drained Rs.17.00 billion at the rates of 1.10% and 1.25% in the respective tenors which didnít affect the prevailing rates. Activity in overnight was restricted in the band of 0.10% and 0.25% throughout the week. No major activity in term market was seen during the week as banks restricted themselves to overnight.

 

 

As the market is expecting major change in interest rates scenario due to which banks are willing to off-load their T-bill holding and activity near nine months to maturity paper was observed at 1.83%. Aggressive trading in bond market was seen and activity was conducted in almost every bond. Latest ten year PIB was the most active one which was initially traded around 6.35% but due to the buying pressure from the corporate sector yields dipped and touched the level of 6.28%. Near to the close of the week rates bounced back and activity was witnessed around 6.34%. Trades in PIB three and five years were witnessed around 3.80% and 4.85% respectively. However, ten year PIB carrying coupon rate of 14.00% was traded initially at 5.68% but later due to the selling pressure yields hiked and activity was took place around 5.85%. This week corporate demand was also seen in fifteen and twenty years PIBs due to which activity in the respective papers were seen as low as 7.45% and 8.45%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.60

02.60

02.90%

2 Year

03.25

03.25

03.30%

3 Year

03.80

03.80

03.50%

4 Year

04.40

04.60

03.70%

5 Year

04.83

04.85

04.10%

10 Year

06.32

06.34

05.15%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jan 21 T-Bill 03 mth. Jan 21 Jan 22
Jan 21 T-Bill 12 mth. Jan 21 Jan 22

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.60,000 Mln. 

Rs.24,450 Mln. 

Rs.10,000 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

22 Jan

83,450 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.30

00.30

01.00

1 Week

00.55

00.60

01.00

1 Month

01.20

01.00

01.35

3 Month

01.45

01.38

02.30

6 Month

01.55

01.63

02.50

1 Year

02.00

01.90

02.95

 


 

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

1 Month

01.35

01.30

01.85

2 Month

01.40

01.40

02.20

3 Month

01.45

01.50

02.50

4 Month

01.50

01.50

02.50

5 Month

01.55

01.55

02.50