FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated March 20, 2004

 

The inter-bank money market remained flooded with surplus liquidity which kept rates at the rock bottom levels. No major movement in rates was observed during the week and overnight activity was witnessed in the narrow band of 0.15% to 0.25%. Due to the overnight one and two week rates were also remaining under pressure and activity in the respective tenors was dealt around 0.50% and 1.00%. No significant activity was seen in the term side, but lending pressure was evident due to which activity in one

 

 

month took place as low as 1.10%. Borrowing interest in three and six months was available at 1.40% and 1.50% against the offers at 1.50% and 1.70%. The most significant part of the week was the T-bill auction of three month and one year. State Bank received total bids of Rs. 54.70 billion against the target of Rs. 45 billion. The Central Bank accepted total amount of Rs. 41.70 billion with the cut-off yields of 1.5699% and 2.0464% which is around 4 and 6 basis points higher then the previous cut-off. This outflow turned out to be insufficient to affect the market. As the market remained liquid, demand for T-bills were seen and one year latest issue was traded around 1.85% and six months T-bill was traded around 1.67%. Trading in long-term securities continued and activity in ten year issue of 06/10/2003 was conducted in the range of 6.36% and 6.41 % during the week. Activity in papers carrying coupon of 11.00% was conducted in the band of 6.35% and 6.38%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.00

02.15

02.30%

2 Year

02.80

02.90

02.75%

3 Year

03.60

03.70

03.05%

4 Year

04.50

04.50

03.55%

5 Year

04.80

04.80

03.55%

10 Year

06.37

06.40

04.45%

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Mar 03 T-Bill 03 mth. Mar 03 Mar 04
Mar 03 T-Bill 12 mth. Mar 03 Mar 04

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.45,000 Mln.  

Rs.54,700 Mln.

Rs.41,600 Mln

 


 

 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

18 Mar

38,175 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.15

06.25

00.70

1 Week

00.40

03.00

00.65

1 Month

01.00

01.85

01.10

3 Month

01.45

01.70

01.60

6 Month

01.60

01.75

01.95

1 Year

01.85

02.00

02.50

 


 

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

1 Month

01.30

01.90

01.60

2 Month

01.35

01.60

01.50

3 Month

01.45

01.55

01.65

4 Month

01.55

01.65

01.70

5 Month

01.60

01.70

01.75