FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Dec 24, 2004

 

State Bank intervened through an OMO and mopped up Rs.7.60bn in one-week tenor at 2.47%, but maturities of around Rs.38.0bn kept the inter-bank money market fairly liquid. Overnight funds traded between 1.50% and 2.75%.
One-week activity took place between 2.25h to 3.00% while two-week was the most active tenor due to year-end crossing and deals were concluded at 3.50% and 3.75%. One-month trades were executed in the range of 3.75% to 4.00%.

SBP conducted three-month and one-year T bill auction on Wednesday and received bids worth Rs.33.3bn against a target of Rs.20.0bn. All bids in one-year tenor were rejected while Rs.15.25bn was accepted in three-months at a cut-off yield of 3.9462% - only 9 basis points higher than the previous cut-off. Later during the week, banks showed interest to buy latest three-month T-bill at 3.75% against offers at 3.60%. Small trades were seen at 3.70%.

 

 

The yield on latest 10-year PIB moved lower on increasing buyer interest. Initial deals were executed at 7.80% but the week ended with bids quoted at 7.73% against offers at 7.65%. Five-year PIB maturing in three years was traded at 5.85% whereas, trades of bonds with close to two-year maturity were seen at 5.70%.

Future Outlook An OMO maturity of Rs.10.6bn 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 and PIB is expected at the existing levels.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.10

05.10

02.90

2 Year

05.35

05.35

03.65

3 Year

05.75

05.75

03.95

4 Year

06.45

06.50

04.00

5 Year

06.75

06.75

05.05

10 Year

07.69

07.82

06.47

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Dec 22 T-Bill 03 Mth. Dec 22 Dec 23
Dec 22 T-Bill 12 Mth. Dec 22 Dec 23

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 20.000Mln 

Rs. 33,300Mln 

Rs.15,250Mln

 

 


 

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

01.00

02.00

04.00

1 Week

02.50

02.75

04.25

1 Month

03.65

03.60

03.50

3 Month

03.88

03.90

02.80

6 Month

04.00

04.10

02.55

1 Year

04.50

04.60

02.75

 


 

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

1 Month

03.95

03.90

03.90

2 Month

03.70

03.90

03.00

3 Month

03.75

03.85

02.75

4 Month

03.85

03.95

02.60

5 Month

03.90

04.00

02.50