FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated February  21, 2004

 

The week started on a higher note with activity reported between 6.25% and 7.40% but it was on Wed. that the rates started to slide and touched the rock bottom levels, while towards the end of the week overnight deals were witnessed in the range of 0.10% to 0.40%. One and two week were initially traded in the range of 4.00% to 2.00% and 2.75% to 1.85%. However at the close, one week trades were seen at 0.60% while activity in two week was noted at 0.75%. One and two month was active throughout the week with initial deals evident at 2.00% and 1.80% and later funds changed hands at 1.00% and 1.20%. Market players were seen interested to cover their positions in three and six month towards the end of the week.

 

 

Bids were available at 1.25% to 1.45% against offers at 1.45% and 1.70% in the respective tenors. This week SBP conducted three month and one year T-bill auction and sold T-bill worth Rs.23.25 bn at the rate of 1.5262% in 3 month and accepted Rs.16.30 bn at the cutoff yield of 1.9838% in one year against the target of Rs.41 bn. Heavy buying was seen in six month and less than one year to maturity T-bill as the SBP maintained the cut-off yield in the latest auction. Trades for latest six month paper was seen at 1.60% while One year paper (30th Oct 2003) was traded at 1.70%. Bond market was seen quiet at the start of the week but it was after the result of T-bill auction which left the market liquid. Ten year papers having maturity less than 8 years were traded at 5.85% to 5.75% while papers carrying 11.00% coupon were traded at the level of 6.27% to 6.25%. Activity in latest 10 year paper issue of 6th Oct 2003 was reported at the level of 6.27% to 6.25%. Bids for five year PIB issue of 18th Jun 2002 were quoted at 3.85% against offers at 3.70% and activity was witnessed at 3.80% and 3.75%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.00

02.10

03.20%

2 Year

02.85

02.90

03.65%

3 Year

03.63

03.75

03.85%

4 Year

04.35

04.35

04.00%

5 Year

04.70

04.75

04.35%

10 Year

06.24

06.26

10.35%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Feb 18 T-Bill 03 mth. Feb 18 Feb 19
Feb 18 T-Bill 12 mth. Feb 18 Feb 19

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.41,000 Mln.

Rs.62,250 Mln. 

Rs.39,550 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

19 Feb

41,775 Mln.

 

 

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.15

07.40

00.25

1 Week

00.45

04.00

00.85

1 Month

01.00

01.95

01.75

3 Month

01.35

01.65

02.25

6 Month

01.55

01.75

02.60

1 Year

01.85

02.10

02.60

 


 

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

1 Month

01.15

02.00

02.25

2 Month

01.30

01.70

02.35

3 Month

01.40

01.65

02.50

4 Month

01.45

01.70

02.60

5 Month

01.50

01.75

02.70