FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Dec 04, 2004

 

The inter-bank market remained liquid during the entire past week despite three OMOs conducted by the State Bank to drain liquidity from the system. Through these OMOs, the State Bank mopped up Rs.42.40 billion. Overnight funds that traded below 1.00% before the OMOs, edged up slightly to trade in a band of 1.50% to 2.50% signifying a continuing liquid market.

 

 

Excess liquidity in the system coupled with the December year-end factor restricted trades to shorter tenors of one and two weeks. Trades for one-week took place in a band of 2.00% to 3.00% while that for two-week were between 2.50% and 3.50% throughout the past week. Demand for year-end crossing funds kept rates for one-month around 4.50% while lenders of longer tenors of three and six months were not keen to trade at these levels. No major activity was seen in the bond market.

FUTURE OUTLOOK

Market should remain liquid and shorter tenor rates should stay at low levels until the T-Bill auction that is due on Wednesday. The six- month T-Bill auction should be interesting as cut-off for the previous auctions have seen continuous rise in yields. The last auction of three and twelve-month paper also saw aggressive bidding and it is expected that bidders will try to test higher yields for this forthcoming auction, too.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.10

05.00

02.40

2 Year

05.35

05.25

03.00

3 Year

05.70

05.40

03.88

4 Year

06.40

06.30

04.60

5 Year

06.80

06.40

04.98

10 Year

07.80

07.80

06.19

 


 

 

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

FIB/PIB

12 Dec 

04,781 mln.

T-Bill  

23 Dec 

17,650 mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

02.50

00.75

00.15

1 Week

03.00

02.00

01.00

1 Month

04.25

03.50

01.85

3 Month

04.10

03.80

01.80

6 Month

04.40

04.50

01.90

1 Year

04.85

05.13

02.20

 


 

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

1 Month

04.55

03.70

02.10

2 Month

04.10

03.90

02.10

3 Month

03.90

03.80

02.05

4 Month

04.00

04.00

01.95

5 Month

04.15

04.10

01.95