FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated June 26, 2004

 

Lending pressure continued during the week as the inter-bank market was flush with liquidity. No significant movement in rates was seen in the overnight tenor and activity was confined in a narrow range of 0.15% to 0.25%. Trades in the one-week tenor initially took place around 0.50% but hiked to 2.00% as the week progressed as the maturity of those trades crossed June-end.

 

 

Trades were concluded in the three and six-month tenors at 2.10% and 2.50%. The important event of the week was the six-month T-bill auction where total bids of Rs.41.60 billion were received against a target of Rs.50 billion. The SBP rejected all the bids because major participation was on higher levels compared to the previous cut-off. After this rejection, bids and offers for the latest one-year paper was quoted in the band of 2.70% and 2.80%, which prior to the auction was traded as high as 3.00%. The bond market was active this week and trades were seen at lower yields. The week saw the latest ten-year bond start from around 7.80% and then drop to between 7.72% and 7.77% as the week progressed.

FUTURE OUTLOOK

Excess liquidity in the system may prompt an intervention by the SBP. No major movement is expected in the short-term rates and it seems that the market will experience no panic for the June-end closing.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

03.20

03.40

02.20%

2 Year

04.60

04.60

02.75%

3 Year

05.50

05.50

03.15%

4 Year

06.10

06.00

04.00%

5 Year

06.55

06.55

04.15%

10 Year

07.80

07.79

05.60%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jun 23 T-Bill 03 mth. Jun 23 Jun 24

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 50,000Mln.  

Rs. 41,635 Mln.

Rejected

 

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

10 June

47,300 Mln

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.20

00.40

00.20

1 Week

02.75

01.00

01.50

1 Month

02.15

02.45

01.45

3 Month

02.15

02.35

01.60

6 Month

02.30

02.70

01.60

1 Year

02.80

03.00

02.10

 

 

 


 

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

1 Month

02.35

02.50

01.80

2 Month

02.20

02.45

01.70

3 Month

02.20

02.40

01.70

4 Month

02.25

02.50

01.65

5 Month

02.30

02.55

01.65