FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Aug 28, 2004

 

MONEY MARKET

The money market rates continued to move upwards despite an inflow of Rs.20bn during the week. However, overnight funds traded at comparatively low levels initially due to the inflow but closed just below the discount rate.
Overnight funds, which started to trade in the band of 4.75% to 5.25%, later on moved up and closed as high as 7.40%. Shorter tenors upto one-month were seen active throughout the week. Initial trades in

 

 

 one-week were executed in the range of 3.25% and 3.75%. However, at close activity took place at 3.75% and 4.25% where substantial trades were evident. Two-week and one-month bids were quoted at 2.00% against offers at 2.75% and 2.50% respectively. Deals were witnessed at the level of 2.50% and 2.25%. Market participants were interested to cover their positions in three and six-month call at 2.50% and 2.75% while offers were available at 3.00% and 3.25%.

Latest six-month T-bill was seen active during the week. Bids were quoted at 2.64% against offers at 2.60%.

In the bond market, PIB 10-year was initially traded at 7.74% but at close trades were evident at 7.80%. Bids for five-year bond issue of 24th September 2002 having three-years to maturity remaining was quoted at 5.25% while offers were available at 5.00%. Latest five-year paper issue of 29th April, 2004 was also active during the week with bids and offers available at 6.10% and 5.90%.

FUTURE OUTLOOK

The inflow of around Rs.57.0bn on September 2, 2004 is likely to ease-off the short-term rates. Three-month and one-year T-bill auction is also due in the coming week and due to huge inflow it is also expected that the SBP will continue the previous trend and slightly raise the cut-off yield.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

03.80

03.80

01.70%

2 Year

04.65

04.65

02.40%

3 Year

05.00

05.00

02.90%

4 Year

05.90

05.85

03.00%

5 Year

05.95

06.00

03.85%

10 Year

07.89

07.72

04.87%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Aug 18 T-Bill 06 Mth. Aug 18 Aug 19

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.35,000 Mln. 

Rs.81,085 Mln.  

Rs. 47,400 Mln.

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

05 Aug

Rs. 101,035 Mln.

 

 

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

01.25

04.75

01.50

1 Week

01.50

04.50

01.50

1 Month

02.00

02.3S

01.20

3 Month

02.10

02.15

01.18

6 Month

02.40

02.50

01.25

1 Year

02.90

02.90

01.45

 

 

 


 

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

1 Month

02.20

02.40

01.30

2 Month

02.20

02.20

01.30

3 Month

02.15

02.15

01.25

4 Month

02.40

02.35

01.25

5 Month

02.50

02.55

01.30