FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated February  14, 2004

 

Overnight activity was conducted at the lower side till the T-bill auction, but it was on Thursday when rates across the board hiked and banks had to approach State Bank for respite and discounting of Rs. 5.30 billion and 2.65 billion was reported on the last two days of the week. One and two week rates were initially quoted in the range of 0.75% and 1.25%, while later on bids were available at 3.25% and 2.25% against the offers at 3.75% and 2.75%. Prior to T-bill auction, activity in three months tenor was conducted around 1.60%, but as the week progressed rates took a hike and were quoted in the band of 1.60% and 1.80%. No major covering was seen in six months however, bids were seen in the range of 1.60% to 1.65% against the offers at 1.90%.

 

 

 The Central Bank conducted six months T-bill auction this week and as per expectations, received heavy participation of around Rs. 36.00 billon against the target of Rs. 15.00 billion and accepted total bids worth Rs. 29.56 billion at the cut-off yield of 1.7244%. Aggressive trading was witnessed in long term securities and trading in ten year PIB issue of 06/10/03 was conducted as low as 6.25%. Buying interest was also present in three and five years issues of 06/10/03 and touched the levels of 3.75% and 4.73%. Market was seen active in three and five year PlBs having maturity in the range of three to three and a half years during the week. Buying interest was witnessed at 4.10% however, offers were available at 3.75% and deals were executed in the band of 3.80% to 4.00%.

 

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.10

02.60

03.50%

2 Year

02.90

03.25

03.90%

3 Year

03.75

03.80

04.10%

4 Year

04.35

04.40

04.25%

5 Year

04.75

04.83

04.60%

10 Year

06.26

06.32

05.40%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Feb 11 T-Bill 06 mth. Feb 11 Feb 12

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.15,000 Mln. 

Rs.36,260 Mln. 

Rs.29,560 Mln

 


 

 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

19 Feb

41,775 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

07.40

00.30

03.00

1 Week

04.00

00.55

03.50

1 Month

01.95

01.20

02.80

3 Month

01.65

01.45

02.80

6 Month

01.75

01.55

02.90

1 Year

02.10

02.00

03.35

 


 

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

1 Month

02.00

01.35

03.40

2 Month

01.70

01.40

03.15

3 Month

01.65

01.45

03.10

4 Month

01.70

01.50

03.05

5 Month

01.75

01.55

03.00