13 May 2024

Market Liquidity Strains Persist as RBI Proposes Further GSec Purchases

author dp
Team INRBonds
Share via:LinkedIn LogoTwitter logo

Weekly Market Highlights:

  1. 10 year 2034 Gsec declined 7 bps on weekly basis.
  2. Weekly t-bill auction witnessed rise in cut-off rate for 6 months as liquidity dries up in the market.
  3. On 9th May 2024, GOI purchased Gsec worth Rs. 100 billion against a proposed amount of Rs. 600 billion for shorter maturing Gsecs.
  4. RBI proposed again to initiate purchase of shorter maturing Gsec on behalf of GOI worth Rs. 600 billion.
  5. INRBonds retail index declined by 4 bps on a weekly basis.
  6. Weekly Gsec auction cut-off for 2030 and 2053 is 7.13%  and 7.20% respectively.
  7. Domestic market liquidity deficit stood at Rs. 1773 billion.
  8. UST 10 year yields traded on a flat note and closed at 4.50%.

Market Data

Particulars

10/5/2024

3/5/2024

Change

10 Yr Benchmark Gsec (%)

7.08%

7.15%

-7 bps

Banking Liquidity (in Rs Billion)

-1773

-784

-126.15%

5 Yr OIS (%)

6.49%

6.50%

-1 bps

1 Yr OIS (%)

6.83%

6.85%

-2 bps

INRBonds Retail High Yield Index

9.59%

-959 bps

Nifty

22,055

22,476

-1.87%

10 Yr SDL

7.42%

7.46%

-4 bps

91 Day T-Bill (%)

7.00%

6.98%

2 bps

182 Day T-Bill (%)

7.08%

7.01%

7.03 bps

10 Yr US Treasury Yield (%)

4.50%

4.51%

-1.01 bps

US Junk Bond Yield (%)

7.71%

7.83%

-12 bps

Brent Crude Oil (In USD per Barrel)

82.78

82.78

0.00%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

State Bank of India

perpetual

8.28%

Cholamandalam Investment and Fin. co. ltd

31-07-2024

7.98%

Mahindra and Mahindra Financial services

23-03-2026

8.26%

Andhra Pradesh State Bevarages corporation ltd

31-05-2032

8.46%

Credit access grameen ltd

7-10-28

9.82%

Currency Market Data

Particulars

10/5/2024

3/5/2024

Change

USD/INR

83.55

83.38

0.20%

DXY

105.31

105.08

0.22%

USD/ Brazil Real

5.16

5.07

1.78%

EUR/ USD

1.0772

1.08

-0.26%

USD/CNY

7.23

7.24

-0.14%

USD/JPY

155.78

152.98

1.83%

USD/ Russian Ruble

91.63

90.88

0.83%