Purchase subscriptions of TBs declined 35.9 percent to LP246.33 billion ($163.4 million) at the February 8th auction as the amount of TBs maturing dropped 37.2 percent to LP182.36 billion ($120.97 million), thus resulting in an LP63.97 billion ($42.4 million) surplus.
Banks resorted to secondary market purchases where prices are below official auction figures, but supply was very limited. The Central Bank may have intervened to a limited extent to cover the lower sales as banks’ purchases dropped. No real change in the pattern of TB subscriptions occurred on February 8th, as long-term TBs continued to be a favored destination, with the 12-M and 24-M TBs’ share accounting for 72.9 percent of total subscriptions.
Shorter 3-M TBs dropped 1.9- percentage points to a weight of 13.51 percent, while the 6-M TB gained 2.5 percentage points to hold a share of 13.61 percent out of total subscriptions. The Central Bank sold only LP1 billion ($0.66 million) worth of 60-day certificates of deposit this week at unchanged interest rates. — ( Banque du Liban et d'Outre-Mer Sal )
© 2001 Mena Report (www.menareport.com )