FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Dec 11, 2004

 

Volatility was seen in the inter-bank market during the week under review. The SBP conducted six-month T-bill auction and rejected all bids against a target of Rs.30.0 bln. The Central Bank also intervened twice in the market mopping up Rs.10.50bn and Rs.26.45bn in one-week at 2.47% and 2.45% and Rs.1.00bn in two-week at 2.40%.
Market players were seen more interested to cover their positions in one-month and bids and offers were available in the range of 4.25% to 4.50%. Three-month

 

 

was also active with bids quoted at 3.75% against offers at 4.25% against T-bills. Rates against PIB were available in a band of 4.75% to 5.25% for three-month.

The inter-bank market was quiet in T-bill even after the rejection of the T-bill auction. The auction saw bids at higher levels and had the SBP increased the cut-off by 40-50 basis points it would only have managed to accept about Rs.2 bln a meager amount considering a target of Rs.30bn.

In the bond market, the latest 10-year PIB was active during the week. Few deals were concluded between 7.90% and 7.85%. The week ended with bids quoted at 7.95% against offers at 7.85%.

FUTURE OUTLOOK

An OMO and FIB maturity of around Rs.42.0bn is due this week. We expect the SBP to conduct OMOs during the week and that should keep short-term rates on the former side. Banks will have to pay premium on borrowings maturing after December year-end.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.10

05.10

02.40

2 Year

05.35

05.35

03.00

3 Year

05.70

05.70

03.73

4 Year

06.40

06.40

04.35

5 Year

06.80

06.80

04.88

10 Year

07.88

07.80

06.15

 


 

 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Dec 09 T-Bill 06 Mth. Dec 09 Dec 10

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 30.000Mln 

Rs. 08,115Mln 

REJECT

 


 

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

05.75

02.50

00.85

1 Week

04.50

03.00

02.10

1 Month

04.50

04.25

02.30

3 Month

04.25

04.10

01.95

6 Month

04.45

04.40

02.00

1 Year

04.75

04.85

02.30

 


 

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

1 Month

04.80

04.55

02.40

2 Month

04.00

04.10

02.20

3 Month

04.00

03.90

01.90

4 Month

04.10

04.00

01.85

5 Month

04.15

04.15

01.80