FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Apr 17, 2004

 

Compare to previous weeks closing this week market opened at shallow levels. Overnight activity was confined in the band of 0.15% and 1.00%. As the market was surplus of liquidity, rates almost in every tenor remained under pressure but no significant activity was noted in term side as banks restricted them selves to shorter tenors. Due to the prevailing liquidity in the system one and two weeks saw a quick

 

 

fall and activity took place around 0.75% and 1.20% respectively. Excess liquidity resulted in SBP conducting OMO on Friday and sucked surplus funds from the system. It accepted total amount of Rs. 18.50 billion at 1.14% in two weeks. Central Bank also conducted T-bill three and twelve months auction and accepted total amount of Rs. 17.150 billion. As expected upward adjustment of four and six basis points were witnessed with the cut-off yields at 1.6137% and 2.1091% in three months and one year. Due to the unexpected delay in the PIB target, heavy trading was noted in bond market, due to which big time movement in the yields were seen during the week. Mixed sentiment were present in the market and at the early part of the week due to the selling by few banks, rates comparatively remained at the higher side and trades were executed in the band of 6.38% and 6.40%. But gradually rates started to slid and finally near the close of the week due to the heavy demand, trades in the ten year issue of 06/10/2004 were struck around 6.28%. As the banks are not sure about the upcoming PIB target buying was also evident in other PIB ten year issue and major trading was conducted in PIBs issue of 18/06/02 and 30/06/03 and touched the levels of 6.21% and 6.30% respectively.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.30

02.30

02.60%

2 Year

03.00

03.00

03.00%

3 Year

03.68

03.65

03.30%

4 Year

04.50

04.45

03.30%

5 Year

04.82

04.78

03.50%

10 Year

06.42

06.40

04.90%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Apr 14 T-Bill 03 mth. Apr 14 Apr 15
Apr 14 T-Bill 12 mth. Apr 14 Apr 15

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.31,000 Mln.  

Rs.34,750 Mln.  

Rs.17,150 Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

15 Apr

31,430 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

01.25

05.00

02.00

1 Week

01.40

03.25

01.50

1 Month

01.50

01.90

01.60

3 Month

01.65

01.85

01.70

6 Month

01.80

01.95

02.00

1 Year

02.05

02.15

02.50

 

 

 


 

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

1 Month

01.65

01.90

02.00

2 Month

01.60

01.80

01.75

3 Month

01.55

01.75

01.60

4 Month

01.65

01.80

01.75

5 Month

01.75

01.85

01.80