Money Market Report

Money market report by Khadim Ali Shah Bukhari & Co on Wednesday (August 17, 2005).
DAILY MONEY MARKET COMMENTS: Today money market rate were initiated on the level of 8.75% - 8.90% and the first deal was witnessed at 8.90% but later in the day the overnight rates dropped to the level of 8.00% - 8.25%. However in clean & call placements the overnight interest rates were at 9.00% - 9.75%. At the end of the day the interbank market closed at the level of 8.50% - 8.75%. SBP reported a nominal discounting of Rs 115 million.
SBP conducted auction for the sale of 3,6 and 12 months treasury bills and accepted Rs 9.025 billion in 3 months @ 7.9197%, Rs 2.775 billion in 6-months @ 8.1388% & Rs 2.85 billion in 12 months @ 9.7907% against the total participation of Rs 52.050 billion.
Keeping in view of today's interbank market we believe that on Thursday overnight repo rates will remain at 1.00% - 2.00% due to excess liquidity in the market. However, if SBP conducts OMO we expect that the overnight repo rates may go upto 5.50% - 6.50%.

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Repo Rates (Yield p a)

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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

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Overnight   8.00       8.90       8.10        8.90           8.48

1-Week      7.50       7.80       8.00        8.25           7.89

2-Week      7.60       7.75       8.00        8.25           7.90

1-Month     7.60       7.85       8.00        8.15           7.90

2-Months    7.75       7.90       8.10        8.25           8.00

3-Months    7.80       7.95       8.05        8.20           8.00

4-Months    7.85       8.00       8.10        8.30           8.06

5-Months    7.90       8.10       8.20        8.40           8.15

6-Months    8.00       8.15       8.25        8.50           8.23

9-Months    8.10       8.20       8.30        8.65           8.31

1-Year      8.25       8.50       8.75        8.90           8.60

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Call Rates (Yield p a)

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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

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Overnight   8.25       9.00       8.50        9.25           8.75

1-Week      7.75       8.00       8.25        8.50           8.13

2-Week      8.00       8.25       8.50        8.75           8.38

1-Month     8.00       8.20       8.40        8.60           8.30

2-Months    8.20       8.40       8.60        8.80           8.50

3-Months    8.30       9.00       8.75        9.25           8.83

4-Months    8.35       9.00       8.80        9.30           8.86

5-Months    8.40       9.10       8.90        9.35           8.94

6-Months    8.50       9.20       9.25        9.50           9.11

9-Months    8.75       9.35       9.30        9.65           9.26

1-Year      9.00       9.50       9.65        9.90           9.51

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PIB Secondary Market Data

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Maturity         Yield      Range

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0.1-0.5 Years     8.70       8.75

0.6-1.0 Years     8.70       8.75

1.1-1.5 Years     8.85       8.90

1.6-2.0 Years     8.95       9.05

2.1-2.5 Years     8.95       9.05

2.6-3.0 Years     9.10       9.20

3.1-3.5 Years     9.10       9.20

3.6-4.0 Years     9.15       9.25

4.1-4.5 Years     9.15       9.25

4.6-5.0 Years     9.20       9.30

5.1-5.5 Years     9.25       9.30

5.6-6.0 Years     9.30       9.35

6.1-6.5 Years     9.30       9.40

6.6-7.0 Years     9.35       9.45

7.1-7.5 Years     9.35       9.45

7.6-8.0 Years     9.40       9.50

8.1-8.5 Years     9.40       9.55

8.6-9.0 Years     9.00       9.20

15 Years         10.75      11.50

20 Years         11.75      12.25

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FIB Secondary Market Data

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Maturity       Yield        Range

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0.1-0.5 Years   7.90         8.00

0.6-1.0 Years   8.50         8.60

1.1-1.5 Years   8.95         9.00

1.6-2.0 Years   9.05         9.15

2.1-2.5 Years   9.05         9.15

2.6-3.0 Years   9.20         9.30

3.1-3.5 Years   9.20         9.30

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Clean Deposit Market

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Tenor          Range      (% p a)

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1 Month         8.75         9.25

3 Months        9.00         9.40

6 Months        9.25         9.75

12 Months       9.75        10.25

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T-Bill Secondary Market Data

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3 Months, 6 Months &

12 Months Instruments

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Days to Maturity    Yield Range %

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0-7 Days                8.75-9.00

8-15 Days               8.10-8.30

16-30 Days              7.85-8.20

31-60 Days              7.90-8.05

61-90 Days              7.90-8.10

91-120 Days             7.90-8.10

121-180 Days            8.00-8.15

181-270 Days            8.50-8.65

271-365 Days            8.69-8.77

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Kerb Market FX Rate

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Currency        Bid         Offer

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USD           60.05         60.10

EUR           73.70         73.80

GBP          107.85        107.95

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