FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Dec 18, 2004

 

An inflow of Rs42.0bn during the past week kept the inter-bank money market liquid. State Bank, through an OMO, mopped up Rs.18.90bn at 2.47% in one week and Rs.3.00bn at 2.39% in two week- leaving the market liquid. Overnight funds initially traded between 5.50% and 6.00%. As the week progressed, the inflow brought overnight rates down to between 0.75% and 1.25% and these rates edged up slightly by the weekend.

 

 

One and two-week trades were seen active during the past week. One-week traded between 3.00% and 4.00% while two-week trades were concluded between 2.50% to 3.50%. One-month trades were executed in the range of 3.75% to 4.25%. Most banks were seen interested to cover their positions in one and three-month call at 5.00% to 5.50%.

Inter-bank market was quiet in T-bills on short supply. In the bond market, the only active issue was the latest 10-year bond that traded in a band of 7.85% and 7.80%.

FUTURE OUTLOOK

An OMO and T-bill maturity of around Rs.38.0bn is due this week. In shorter tenors, one-week rates are likely to stay soft while borrowers will have to pay premiums in all tenors to cross the year-end.

A three-month and one-year T-bill auction is due this week and, based on available economic indicators that show signs of an inflationary pressure, we expect average bids at higher levels possibly up by between 0.25% to 0.50% over the previous cut-offs.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.10

05.10

02.70

2 Year

05.35

05.35

03.40

3 Year

05.75

05.70

04.10

4 Year

06.50

06.40

04.75

5 Year

06.75

06.80

05.15

10 Year

07.82

07.88

06.38

 


 

 

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

02.00

05.75

02.00

1 Week

02.75

04.50

02.75

1 Month

03.60

04.50

02.85

3 Month

03.90

04.25

02.30

6 Month

04.10

04.45

02.20

1 Year

04.60

04.75

02.48

 


 

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

1 Month

03.90

04.80

03.15

2 Month

03.90

04.00

02.40

3 Month

03.85

04.00

02.25

4 Month

03.95

04.10

02.20

5 Month

04.00

04.15

02.10