19 May 2024

Gsec Yields Dip, RBI Cuts T-Bill Borrowings, and Liquidity Deficit Persists

author dp
Team INRBonds
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Weekly Market Highlights:

  1. 10 year 2034 Gsec yields fell by 3bps on weekly basis. Touched levels of 7.02% during the week.
  2. Weekly T-bill auction cut-off was closed on a flattish note.
  3. RBI cuts T-bill borrowings by 55% for remaining Q1Fy25.
  4. On 16th May 2024, GOI purchased Gsec worth Rs. 20 billion against a proposed amount of Rs. 600 billion for shorter maturing Gsecs.
  5. RBI proposed again to initiate purchase of shorter maturing Gsec on behalf of GOI worth Rs. 600 billion including FRBs for the first time in Fy25.
  6. INRBonds retail index declined by 4 bps on a weekly basis, in-line with Gsec movement.
  7. Weekly Gsec auction cut-off for 2034 and 2064 is 7.04%  and 7.19% respectively.
  8. Domestic market liquidity deficit stood at Rs. 939 billion.
  9. UST 10 year yields traded on a flat note and closed at 4.42%.

Market Data

Particulars

17/5/2024

10/5/2024

Change

10 Yr Benchmark Gsec (%)

7.05%

7.08%

-3 bps

Banking Liquidity (in Rs Billion)

-939

-1773

47.04%

5 Yr OIS (%)

6.81%

6.49%

32 bps

1 Yr OIS (%)

6.41%

6.83%

-42 bps

INRBonds Retail High Yield Index

9.59%

9.63%

-4 bps

Nifty

22,482

22,055

1.93%

10 Yr SDL

7.43%

7.42%

1 bps

91 Day T-Bill (%)

6.99%

7.00%

-1 bps

182 Day T-Bill (%)

7.08%

7.08%

0.45 bps

10 Yr US Treasury Yield (%)

4.42%

4.50%

-8 bps

US Junk Bond Yield (%)

7.57%

7.71%

-14 bps

Brent Crude Oil (In USD per Barrel)

84

82.78

1.47%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

HDFC BANK LIMITED

02-06-2025

8.01%

BELSTAR MICROFINANCE LIMITED

15-05-2026

9.97%

LARSEN AND TOUBRO LIMITED

28-04-2028

7.58%

Embassy Office Parks REIT

18-10-2026

8.20%

HDB FINANCIAL SERVICES LIMITED

23-09-2025

8.15%

Currency Market Data

Particulars

17/5/2024

10/5/2024

Change

USD/INR

83.3020

83.5500

-0.30%

DXY

104.5000

105.3100

-0.77%

USD/ Brazil Real

5.1300

5.1600

-0.58%

EUR/ USD

1.0869

1.0772

0.90%

USD/CNY

7.2243

7.2300

-0.08%

USD/JPY

155.6500

155.7800

-0.08%

USD/ Russian Ruble

90.9500

91.6300

-0.74%