FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated March 27, 2004

 

The week started with an intervention by Central Bank in the form of two OMOs during the week to suck the excess liquidity from the system. The State Bank mopped up total amount of Rs.16.60 billion to give stability to the market. In the first OMO of the week, SBP accepted around Rs. 5.10 billion in one and four weeks at 1.09% and 1.15%, but in the second OMO, SBP took the market by surprise and accepted total amount of Rs. 11.50 billion in one and two weeks at

 

 

much higher levels of 2.00% in each tenor. Even these OMOs could not affect the market trend as market was still very liquid and flooded with the excess liquidity and activity remained at the shallow levels till the end of the week. Initially one week funds were traded at the record low level of 0.15%, but as the week progressed an upward movement was witnessed, as it gives the opportunity to cross over the quarter end and as banks prefer to cover their positions in one week due to which deals were executed around 1.50%. This week one month saw a major activity and initially was traded around 1.15% and finally touched the level of 1.60%. Long term market was rather quiet this week. However, borrowing interest in three and six months was quoted at 1.45% and 1.60% as against the offers of 1.55% and 1.75%. The secondary market for T-Bill was rather quiet during the past week. Quotes for latest six months issue of 4th March, 2004 were present in the band of 1.68% and 1.64% but no significant trades were reported. Bond market continued to remain active throughout the week where PIB 10 year issue of 18th June, 2002 was traded at 6.38% in ready. However, three months forward deals for the same issue were dealt at 6.53% and 6.52%. PIB 10 year issue of 6th October, 2003 was traded at 6.41% after the coupon but closed with bids quoted at 6.40% against offers at 6.36% in ready.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.10

02.00

02.35%

2 Year

02.80

02.80

02.60%

3 Year

03.62

03.60

02.90%

4 Year

04.50

04.50

03.00%

5 Year

04.78

04.80

03.30%

10 Year

06.38

06.37

04.20%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Mar 17 T-Bill 03 mth. Mar 17 Mar 18
Mar 17 T-Bill 12 mth. Mar 17 Mar 18

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

00.40

00.15

00.35

1 Week

01.50

00.40

00.65

1 Month

01.50

01.00

01.10

3 Month

01.60

01.45

01.35

6 Month

01.75

01.60

01.60

1 Year

01.95

01.85

02.25

 


 

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

1 Month

01.60

01.30

01.60

2 Month

01.55

01.35

01.40

3 Month

01.50

01.45

01.50

4 Month

01.60

01.55

01.75

5 Month

01.65

01.60

01.80