FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Apr 03, 2004

 

The inter-bank market saw no panic on the quarter end with the rates remaining at the tail end of the yield curve. Volatility was witnessed in overnight as activity was observed in the wide band of 0.15% and 5.00%. Initially deals were executed in the narrow band of 0.15% and 0.50%, but after the T-bill auction in which State Bank accepted Rs. 20.00 billion against the target of Rs. 15.00 billion, fund in overnight change hands around 5.00%, but at the end of the week 

 

 

market slid and closed in the band of 1.00% and 1.50%. This week shorter tenors are active compared with the longer tenors of three and six months and no major activity was seen in respective tenors. Deals in one and two weeks were executed at the levels of 1.25% and 1.50% prior to T-bill auction but later on banks covered their positions at 3.00% and 2.50% respectively. One month also saw an upward movement with deals initially dealt around 1.40%, but near the end of the week touched the level of 1.80%. This week State Bank conducted its six months T-bill auction with the pre-auction target of Rs. 15.00 billion. SBP received a total amount of Rs. 28.335 billion and accepted Rs. 20.00 billion at the cut-off yield of 1.8418% which is around six basis points higher then the previous cut-off. The most significant part of the week was trading in the long term securities. As banks are now expecting a comparatively low PIB target sudden interest was evident in PIB and aggressive trading in PIB three and five year was seen during the week. Trades in the PIB issue of 06/10/02 three and six years were witnessed around 3.60% and 4.75%. Trades in ten year papers which carry the maturity close to eight years took place in the band of 6.36% to 6.38%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.30

02.10

02.60%

2 Year

03.00

02.80

02.10%

3 Year

03.65

03.62

03.25%

4 Year

04.45

04.50

03.25%

5 Year

04.78

04.78

03.50%

10 Year

06.40

06.38

04.60%

 


 

 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Mar 31 T-Bill 06 mth. Mar 31 Apr 01

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.15,000 Mln. 

Rs.28,335 Mln.  

Rs.20,685 Mln 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

15 Apr

31,430 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

05.00

00.40

07.45

1 Week

03.25

01.50

04.50

1 Month

01.90

01.50

02.15

3 Month

01.85

01.60

01.80

6 Month

01.95

01.75

02.00

1 Year

02.15

01.95

02.65

 


 

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

1 Month

01.90

01.60

02.65

2 Month

01.80

01.55

02.20

3 Month

01.75

01.50

01.90

4 Month

01.80

01.60

02.00

5 Month

01.85

01.65

02.15