FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Apr 24, 2004

 

The interbank money market experienced a highly volatile week. Market traded overnight funds initially at the lower side of the yield curve but rates started to hike after the intervention by State Bank. SBP conducted a one week OMO in which it mopped around Rs.5.50 billion at 1.25%. Activity in overnight was witnessed as high as 6.00%, but towards the week end close, rates eased and touched the levels of 0.75% and 1.00%. High overnight rates also resulted

 

 

in increase in one and two weeks rates and activity in the respective tenors were dealt around 3.50% and 3.00% respectively. In the term market, no major activity was observed as banks were reluctant to cover their positions at the prevailing levels. However, few stray deals were executed in one month at 2.40%. Activity in the three and six months tenors were hard to come by with bids and offers in the respective tenors quoted in the band of 1.90% and 2.25%. Much awaited PIB auctions of three, five and ten years were announced with pre-auction target of Rs. 25 and Rs.15 billion. The auctions to be held on 28/04/2004 and 28/05/2004, resulted in hectic trading for the paper between the wide bands. Initial trading in the issue was seen around 6.43%. However, due to buying pressure activity was evident in the band of 6.39% to 6.42%, near the end of the week. Heavy selling touched the yields at the level of 6.46%. This hike was temporary and later eased and was quoted in the band of 6.42% and 6.44%. Short selling in three and five year PlB's was seen as high as 3.72% and 4.85%. Aggressive trading in PIB issue of 06/10/03 was witnessed during the week after the announcement of the PIB target. Keen selling was present in the market due to which sudden hike was noted and ten year PIB issue of 06/10/03 was quoted in the band of 6.36% and 6.41%. Trades in three and five year PlB's issue of 06/10/03 was dealt as high as 3.60% and 4.86%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

02.60

02.30

02.45%

2 Year

03.30

03.00

02.95%

3 Year

03.75

03.68

03.25%

4 Year

04.45

04.50

03.30%

5 Year

04.90

04.82

03.60%

10 Year

06.46

06.42

04.85%

 

 

 


 

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

01.25

01.70

1 Week

01.55

01.40

01.70

1 Month

01.80

01.50

01.70

3 Month

01.85

01.65

01.70

6 Month

01.95

01.80

01.75

1 Year

02.20

02.05

02.40

 


 

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

1 Month

01.90

01.65

02.10

2 Month

01.85

01.60

01.65

3 Month

01.90

01.55

01.60

4 Month

01.95

01.65

01.75

5 Month

01.95

01.75

01.75