FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated February  29, 2004

 

No major change in the market scenario was noted during the week and rates across the board remained at the shallow levels throughout the week. State Bank conducted its OMO to suck the excess liquidity from the system and mopped up Rs. 22.00 billion in one and four weeks at 0.95% and 1.15%. Rates temporary hiked, but eventually settled down and the week closed with activity taking place around 0.15%.

 

 

 After the result of OMO, aggressive lending was seen in one month where deals were executed at the record low of 0.50%, but later on regained and was quoted in the band of 0.75% and 1.25%. Three months tenor was also active and borrowing interest was present around 1.45% against the offers at 1.55% and deals were witnessed around 1.50%. No major activity was observed in six months, however bids and offers were available in the band of 1.50% and 1.65%. As the market was flooded with liquidity, demand for T-bills was seen and activity in latest six month paper (12/02/04) was traded as low as 1.50% and one year paper (30th October, 2003) at 1.70%. Trading in PIB ten year issue of 06/10/03 was witnessed initially at 6.23% but by the mid of week touched the level of 6.32%. Near the tail end of the week it was quoted in the range of 6.26% and 6.28%. Demand for papers which carry coupon rates of 9.00% and 11% was observed in the wide band of 6.33 and 6.26%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.10

02.00

03.10%

2 Year

02.85

02.85

03.70%

3 Year

03.63

03.63

03.85%

4 Year

04.35

04.35

04.00%

5 Year

04.65

04.70

04.00%

10 Year

06.27

06.24

05.20%

 


 

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

00.20

00.15

00.40

1 Week

00.35

00.45

00.75

1 Month

01.05

01.00

01.45

3 Month

01.50

01.35

02.00

6 Month

01.65

01.55

02.25

1 Year

01.95

01.85

02.75

 

 

 


 

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

1 Month

01.10

01.15

01.90

2 Month

01.40

01.30

02.10

3 Month

01.45

01.40

02.20

4 Month

01.50

01.45

02.30

5 Month

01.55

01.50

02.30