FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Oct 09, 2004

 

MONEY MARKET

Inter‑bank market remained liquid during the last week despite SBP conducting two open market operations (OMO) where a total amount of Rs.22.30 billion was draining from the market at 2%. Rates continued to stay on the lower side indicating surplus liquidity. Overnight, one and two‑week funds traded below 2.5% during the week. One‑month deals were seen between 2.10% and 2.40%.

 

Buying interest in less‑than‑one‑year to maturity T‑bill was seen. Four and a half month to maturity paper was traded at 3.00%. One‑year T‑bill close to seven-­month‑to‑maturity was sold at 3.20%. Bids for close to one‑year‑to‑maturity T-­bill were available at 3.70% against offers at 3.50%.

Bids and offers for the latest 10‑year PIB were quoted in the range of 8.52% and 8.46% respectively. Trades were concluded in the band of 8.51% and 8.47%. Three‑year PIB having less than one‑year to maturity was active with bids quoted at 3.70% against offers at 3.50% and deals were executed at 3.60%. Latest five‑year paper was available at 6.35% but no activity took place.

FUTURE OUTLOOK

Although an inflow of around Rs.21.85bn from maturing OMO is due this week but outflows on the 1st of Ramazan and a fresh 6‑month T‑bill auction are expected to keep the market slightly tight. The cut­off for this 6-month auction is expected to be 35 to 45 basis points higher than the last auction.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

04.30

04.30

02.60%

2 Year

05.00

05.00

03.50%

3 Year

05.35

05.30

04.10%

4 Year

06.25

06.20

04.50%

5 Year

06.35

06.30

05.15%

10 Year

08.48

08.48

06.20%

 


 

 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Sep 29 T-Bill 03 Mth. Sep 29 Sep 30

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.60,000 Mln. 

Rs.41,250 Mln.  

Rs.17,450 Mln. 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill  

20 Oct 

05,196 min.

T-Bill  

28 Oct 

80,250 min.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

01.50

00.25

03.00

1 Week

02.50

00.75

02.50

1 Month

02.75

02.00

01.95

3 Month

03.00

02.55

01.80

6 Month

03.25

03.00

02.00

1 Year

03.75

03.60

02.25

 


 

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

1 Month

02.95

02.25

02.25

2 Month

02.95

02.40

02.00

3 Month

02.90

02.50

01.95

4 Month

03.10

02.70

01.95

5 Month

03.20

03.00

02.00