6 May 2024

RBI to Buy Back G-Secs Worth Rs 400 Billion to Manage Market Liquidity

author dp
Team INRBonds
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Weekly Market Highlights:

  1. 10 year 2034 Gsec closed on a flat note on weekly basis.
  2. Weekly t-bill auction saw sharp rise in cut-off rate for 3 months as liquidity dries up in the market.
  3. In order to maintain lower cost of borrowing and to manage liquidity in the market, RBI did not use VRR auction during the and announced buying of Rs.400 billion worth of Gsecs maturing in November 2024 and January 2025.
  4. INRBonds retail index declined by 4 bps on a weekly basis.
  5. Weekly Gsec auction cut-off for 2039, 2026 and 2064 is 7.19%, 7.16% and 7.29% respectively.
  6. Domestic market liquidity deficit stood at Rs. 784 billion.
  7. Motilal Oswal public debt IPO closed on 3rd May after attracting birds worth Rs 12 billion.
  8. U.S. job growth totaled 175,000 in April 2024, much less than expected, while unemployment rose to 3.9%.
  9. US Weak job data for April 2024 lead to fall i n UST 10 year yields to 4.51%.

Market Data

Particulars

3/5/2024

27/4/2024

Change

10 Yr Benchmark Gsec (%)

7.15%

7.15%

0 bps

Banking Liquidity (in Rs Billion)

-784

-1438

45.48%

5 Yr OIS (%)

6.50%

6.60%

-10 bps

1 Yr OIS (%)

6.85%

6.89%

-4 bps

INRBonds Retail High Yield Index

9.59%

9.63%

-4 bps

Nifty

22,476

22,419

0.25%

10 Yr SDL

7.46%

7.49%

-3 bps

91 Day T-Bill (%)

6.98%

6.92%

6 bps

182 Day T-Bill (%)

7.01%

7.04%

-3.01 bps

10 Yr US Treasury Yield (%)

4.51%

4.66%

-15 bps

US Junk Bond Yield (%)

7.83%

8.00%

-17 bps

Brent Crude Oil (In USD per Barrel)

82.78

88.64

-6.61%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

Bajaj Finance Ltd

17-11-2025

8.13%

Tata Capital Financial Services Ltd

25-07-2025

8.07%

National Housing Bank

18-12-2024

7.54%

HBD Financial services

16-03-2026

8.29%

L&T Finance

1-7-24

7.47%

Currency Market Data

Particulars

3/5/2024

27/4/2024

Change

USD/INR

83.38

83.388

-0.01%

DXY

105.08

105.97

-0.84%

USD/ Brazil Real

5.07

5.145

-1.46%

EUR/ USD

1.08

1.0719

0.76%

USD/CNY

7.24

7.247

-0.10%

USD/JPY

152.98

159.27

-3.95%

USD/ Russian Ruble

90.88

90.9951

-0.13%