FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated June 19, 2004

 

Past trend continued into the current week with no significant changes in rates. Excess liquidity in the system kept short-term rates under pressure and overnight tenor was traded in a band of 0.10% to 0.50%. The SBP provided some stability in the system by conducting an Open Market Operation (OMO) for one week and mopping up Rs.55.70 billion at 1.00%. After this intervention, rates hiked temporarily and overnight touched a high of around 3.50% but eventually eased below the 1.00% mark.  

 

 

Banks were keen to cover their liquidity positions over June-end and therefore two-week rates were quoted in the range of 3.00% and 4.00%.

Rates in the term-market saw no major movement with the one and three-month bids quoted around 2.35% and 2.25% against offers at 2.75% and 2.60%. Six-month was quoted in the band of 2.50% and 2.75%. Heavy trading continued in the bond market with yields showing an upward trend. Trading in the 3 and 5-year PIB was seen as high as 5.55% and 6.50%. The most active paper was the 10-year latest PIB where trades were seen in the wide band of between 7.71 % and 7.94%.

FUTURE OUTLOOK

The existing trend is expected to continue with short-term rates likely to remain on the lower side and long-term rates most likely to experience an upward trend. T-bill auction is also due in the coming week and an upward adjustment of around 35 to 40 basis points is likely in the cut-off yield.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

03.40

03.40

02.60%

2 Year

04.60

04.50

03.10%

3 Year

05.50

05.25

03.50%

4 Year

06.00

05.70

04.00%

5 Year

06.55

06.15

04.60%

10 Year

07.79

07.82

05.90%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jun 08 T-Bill 03 mth. Jun 08 Jun 10
Jun 08 T-Bill 12 mth. Jun 08 Jun 10

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.15,000 Mln. 

Rs. 25,750 Mln. 

Nil

 

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

10 June

47,300 Mln

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.40

00.20

00.20

1 Week

01.00

00.50

00.40

1 Month

02.45

02.70

02.45

3 Month

02.35

02.35

02.15

6 Month

02.70

02.60

02.20

1 Year

03.00

02.95

02.55

 


 

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

1 Month

02.50

02.80

02.75

2 Month

02.45

02.50

02.35

3 Month

02.40

02.35

01.95

4 Month

02.50

02.40

01.95

5 Month

02.55

02.45

02.00