FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Jan 08, 2004

 

MONEY MARKET Overnight funds traded at low levels of between 0.75% and 1.50% for most part of -the week despite an early OMO on Monday where the SBP mopped up Rs.6.50 bln. It was on Thursday, after the T-bill auction, that rates in all tenors moved up and overnight trades concluded at 7.40%. Banks had to approach the SBP for discounting.
One and two-week tenors initially traded between 2.25% and 3.50% but paucity of funds pushed the rates up and deals were executed as high as 6.00% and 5.75% in the respective tenors towards the end

 

 

of the week. One-month was also seen active and initial deals were done at 3.50%. However, as the weekend approached, rates hiked and bids and offers were available at 4.25% and 4.75%.

State Bank conducted the 6-month T-Bill auction and contrary to expectations raised the cut-off rate by 48 basis points from the previous cut-off yield of 3.8426%. It received bids worth Rs.30.9 bln against a target of Rs.10.0 bln and sold T-bill worth Rs.27.45 bln at the cut-off rate of 4.3228%. Buying interest in the latest six-month T-bill was seen at the rate of 4.30% against offers at 4.15% with deals executed at 4.20%. Scarcity of funds moved the rates up and the week closed with bids quoted at 4.40% against offers at 4.20%. Similar trend followed in the bond market. Initial activity was seen at 7.72% while no buying interest from corporate clients reduced the activity. At close, bids for latest 10-year bond were quoted at 7.75% and offers at 7.65%.

FUTURE OUTLOOK

OMO maturity of Rs. 6.50 bln is due this week. Short term market of up to one-month is likely to remain tight. T-bill rates are expected to be at the higher side. Bond rates are also expected to move up.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

05.10

05.10

02.50

2 Year

05.35

05.35

03.10

3 Year

05.65

05.60

03.95

4 Year

06.30

06.35

04.00

5 Year

06.70

06.70

04.98

10 Year

07.73

07.70

06.30

 


 

 

 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Jan 05 T-Bill 06 Mth. Jan 05 Jan 06

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs. 10.100Mln 

Rs. 30,900Mln 

Rs. 27,450Mln

 


 

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

07.45

01.50

00.25

1 Week

06.75

02.00

00.70

1 Month

04.55

03.45

01.35

3 Month

04.10

03.65

01.45

6 Month

04.45

03.95

01.70

1 Year

04.65

04.35

02.00

 


 

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

1 Month

04.75

03.50

01.40

2 Month

03.80

03.55

01.45

3 Month

03.90

03.60

01.50

4 Month

04.00

03.70

01.55

5 Month

04.15

03.75

01.65