FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Nov 27, 2004

 

The inter-bank market was volatile during the week under review. SBP conducted T-bill auction and sold three-month paper of Rs.26.20bn at 3.8578% and one-year paper of Rs.300mn at 4.4946% 53 and 63 basis points higher than the previous cut-offs. The SBP also intervened in the market and mopped up Rs.19.45bn in one-week and Rs.4.10bn in two-week at 2.50%.

 

 

Overnight funds initially changed hands between 3.00% and 4.50% but it was after the auction that rates came down and funds traded as low as 0.75%. One and two-week remained active where initial deals were executed in the range of 3.00% to 4.25% and later moved lower to a band of 2.25% to 2.75%. Bids for year-end crossing funds were available at 3.75% against offers at 4.25%. Three-month was also active during the week between 3.70% and 3.90%.

Market participants were seen interested to buy the latest three-month T-bill at 3.75% while offers were available at 3.65% with some trades concluded at 3.70%.

The latest 10-year PIB was initially traded in the range of 7.65% to 7.60%. The week ended up with bids quoted at 7.90% against offers at 7.75%.

FUTURE OUTLOOK

An OMO maturity of Rs.19.45bn is due this week. Rates for tenors maturing before December year-end are expected to remain soft while banks will have to pay premium on year-end crossing funds. Buying interest in T-bill is expected at higher levels where potential sellers will have to bear capital loss if they decide to sell their inventory.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.00

05.00

02.50

2 Year

05.25

05.25

03.00

3 Year

05.40

05.40

04.00

4 Year

06.30

06.30

04.60

5 Year

06.40

06.40

05.00

10 Year

07.80

07.62

06.16

 


 

 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Nov 24 T-Bill 12 Mth. Nov 24 Nov 25
Nov 24 T-Bill 03 Mth. Nov 24 Nov 25

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 55.000Mln 

Rs. 35,900Mln 

Rs. 26,500Mln

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill  

22 Nov

03,254 mln.

T-Bill  

24 Nov

56,335 min.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.75

04.50

01.25

1 Week

02.00

04.25

02.00

1 Month

03.50

03.95

02.35

3 Month

03.80

04.00

02.10

6 Month

04.50

04.25

02.10

1 Year

05.13

04.90

02.40

 


 

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

1 Month

03.70

03.95

02.40

2 Month

03.90

03.80

02.20

3 Month

03.80

03.75

02.10

4 Month

04.00

03.85

01.95

5 Month

04.10

03.90

01.95