FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Oct 16, 2004

 

Despite an inflow of Rs.15.0 billion in the inter-bank market, discounting of up to Rs.45.8 billion was seen during the past week. Market remained tight and overnight deals moved from lows of 1.75% to close at a high as 7.40%.
One and two-week trades were done at 5.25% and 4.25% after being traded at 3.75% and 3.50% during the early part of the week. One and two-month were the most active tenors. Deals were executed initially

 

at 2.90% and 2.75%. However, liquidity crunch forced the rates up and by the week-end rates had moved up to 3.75% and 3.50%. Banks were also seen interested to cover their positions in three and six-month tenors.

SBP conducted its six-month T-bill auction with a target of Rs.5.0 billion and received bids of Rs.8.285 billion. Of this, bids worth Rs.1.25 billion were accepted at 3.2403% higher by 21 basis points from the previous cut-off. Bids and offers for seven-month to maturity paper were quoted at 3.30% and 3.15% but no significant activity was seen.

The bond market saw rates moving down sharply on buying pressure. Latest issued 10-year PIB closed with bids at 8.37% against offers at 8.34% after trading initially at 8.45%.

FUTURE OUTLOOK

Money market is expected to remain tight despite maturities of around Rs.9.5 billion due this week. Buying interest in T-Bills should remain thin. Bond yields are expected to rise on a higher interest rate scenario.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

04.50

04.30

02.60%

2 Year

05.40

05.00

03.40%

3 Year

05.65

05.35

03.90%

4 Year

06.65

06.25

04.40%

5 Year

06.70

06.35

04.90%

10 Year

08.36

08.48

06.14%

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Oct 13 T-Bill 03 Mth. Oct 13 Oct 14

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 5,000 Mln. 

Rs. 8,285 Mln   

Rs. 1,250 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

07.00

01.50

00.30

1 Week

05.50

02.50

00.50

1 Month

03.50

02.75

01.00

3 Month

03.40

03.00

01.25

6 Month

03.40

03.25

01.50

1 Year

03.95

03.75

01.85

 


 

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

1 Month

03.60

02.95

01.25

2 Month

03.20

02.95

01.30

3 Month

03.00

02.90

01.35

4 Month

03.10

03.10

01.40

5 Month

03.15

03.20

01.50