FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Jan 01, 2004

 

Activity remained slow in the inter-bank market due to year-end. SBP also remained quiet and didn't conduct any OMO against maturities of Rs. 10.6 bn. Overnight funds for most part of the week traded in the range of 1.00% to 1.75% but few deals were concluded between 2.00% and 2.75%.
One and two-week tenor traded initially between 3.75% and 4.50% but eased on surplus liquidity and deals were executed at 2.25% and 2.50% in the respective tenors. One-month was active and initial

 

 

deals were done as high as 3.80%. However, week ended with bids at 3.20% against offers at 3.60%. Rates for three-month call money also moved down to 5.00% from 5.75% during the week.

Rates on T-bill and PIB moved lower on corporate buying interest. Trades in short dated maturity were executed at 3.45%. Bids for latest three-month T-bill were seen at 3.65% against offers at 3.55%. Heavy corporate demand also moved down the yield on seven to eight-year to maturity papers. Deals were seen in the range of 7.65% to 7.60%. The latest 10-year bond closed with bids and offers quoted at 7.75% and 7.65%.

FUTURE OUTLOOK

Rates are likely to remain soft for tenors of up to one-month although there is no maturity due this week. The next six-month T-Bill auction should be interesting as bidders weigh their decision to participate actively due to increased demand with a conflicting view of higher interest rate scenario.

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

03.60

3 Year

05.60

05.75

04.70

4 Year

06.35

06.45

04.75

5 Year

06.70

06.75

05.05

10 Year

07.70

07.69

06.39

 

 

 


 

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 Jan 

259 mln.

FIB/PIB

28 Jan 

4,730 mln.

T-Bill  

20 Jan 

90,900 mln.

 

 

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

01.50

01.00

06.75

1 Week

02.00

02.50

04.25

1 Month

03.45

03.65

02.50

3 Month

03.65

03.88

02.05

6 Month

03.95

04.00

02.20

1 Year

04.35

04.50

02.20

 

 

 


 

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

1 Month

03.50

03.95

03.30

2 Month

03.55

03.70

02.50

3 Month

03.60

03.75

02.25

4 Month

03.70

03.85

02.25

5 Month

03.75

03.90

02.20