FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated March 06, 2004

 

Excess liquidity sustained in the market this week and no significant change in the rates was seen. Activity remained at the bottom end of the yield curve as no intervention by central bank was observed due to which activity in overnight was seen in the band of 0.15% and 0.50% throughout the week. One and two week activity was also seen at the levels of 0.50% and 0.90%. The central of attraction was one month tenor which gives the opportunity to cross over the quarter

 

 

end. Activity was witnessed around 1.30%, but at the end of week rates took a hike and bids and offers was quoted in the band of 1.40% and 1.60%. This week State Bank conducted its six month T-bill auction and accepted total amount of Rs. 18.43 billion at the cut off yield of 1.7805% which is around six basis points higher than the previous cut-off yield. Selling pressure was seen in the long term securities due to which activity in PIB ten year issue of 06/10/03 was conducted at the levels of 6.33%. Initially activity in the respective paper was dealt around 6.27%. Activity in three and five year PIB latest issue was seen at 3.65% and 4.70%. The major reason for this selling was the news regarding the PIB target which is due in next month.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.10

02.10

02.60%

2 Year

02.90

02.85

02.90%

3 Year

03.65

03.63

03.25%

4 Year

04.45

04.35

03.25%

5 Year

04.70

04.65

03.60%

10 Year

06.33

06.27

04.70%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Mar 03 T-Bill 03 mth. Mar 03 Mar 04

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.20,000 Mln.

Rs.28,185 Mln.

Rs.18,435 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

18 Mar

38,175 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

01.50

00.20

02.00

1 Week

01.50

00.35

01.20

1 Month

01.65

01.05

01.40

3 Month

01.55

01.50

01.60

6 Month

01.65

01.65

01.75

1 Year

01.95

01.95

02.50

 

 

 


 

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

1 Month

01.70

01.10

01.90

2 Month

01.50

01.40

01.70

3 Month

01.50

01.45

01.70

4 Month

01.60

01.50

01.70

5 Month

01.70

01.55

01.65