FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Apr 10, 2004

 

Volatility prevailed during the week and initially trades in overnight were witnessed comparatively at the lower side. As the week progressed it touched the higher levels and activity was executed just below the discount rate at 7.40%, and at the end of the week market witnessed a heavy discounting of Rs. 19.70 billion. With the overnight rates at the higher side, one and two week also saw a hike and touched the levels

 

 

of 3.50% and 2.50%, but later eased and bids were quoted at 2.75% and 2.25% against the offers at 3.00% and 2.75%. This hike in rates was apparently due to the hidden outflow from the system. The one month was seriously hit by the prevailing conditions and deals were executed at 2.10%. The longer tenors of three and six months also came under pressure compared to the previous week and a sharp rise was noted with the bids for these tenors quoted around 1.75% to 1.90% against the offers at 1.85% to 2.10%. Uncertainty over the up coming PIB target kept the bond market volatile through out the week. Selling pressure in latest ten year issue of 06/10/2003 was seen which pushed the yield at higher side and activity was noted around 6.43%. Major trades in ten year PIBs was noted in the issues of 30/06/03 and 18/06/02 which carry the coupons of 9.00% and 11.00% as deals in the respective papers were executed in the band of 6.38% to 6.44%. Heavy selling was also noted in the latest three and five year PIBs and initially trades were seen around 3.56% and 4.70%, later due to this aggressive selling touched the levels of 3.70% and 4.90%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.30

02.30

02.50%

2 Year

03.00

03.00

02.90%

3 Year

03.68

03.65

03.05%

4 Year

04.50

04.45

03.25%

5 Year

04.82

04.78

03.65%

10 Year

06.42

06.40

04.75%

 

 

 


 

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

01.50

05.00

03.25

1 Week

02.00

03.25

02.05

1 Month

01.70

01.90

01.75

3 Month

01.65

01.85

01.65

6 Month

01.85

01.95

02.00

1 Year

02.10

02.15

02.50

 

 

 


 

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

1 Month

01.75

01.90

02.25

2 Month

01.70

01.80

01.80

3 Month

01.70

01.75

01.75

4 Month

01.85

01.80

01.80

5 Month

01.85

01.85

01.85