24 Jun 2024

Record high FII inflows in G-secs likely to pull yields down further

author dp
Team INRBonds
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Weekly Market Highlights:

  1. 10 year 2034 Gsec yields closed at 6.97%, fell by 1 bps on weekly basis.
  2. Weekly Gsec auction cut-off for the 2029 and 2073 stood at 6.9899% and 7.0724% respectively.
  3. Weekly T-bill auction data shows 3M and 6M and 1 year yields were at 6.82%, 6.96%  and 6.98% respectively, down by 2-3 bps compared to previous week auctions.
  4. Domestic market liquidity surplus stood at Rs.146.94 billion.
  5. The HSBC India Manufacturing PMI rose to 58.5 in June 2024, up from 57.5 in May, which had marked a three-month low. This latest figure suggests a quicker expansion in India's manufacturing sector, driven by stronger growth in both output and new orders.
  6. The INR Bonds high yield Index stood at 9.565% down 8bps biweekly basis.
  7. On June 28, JPMorgan Chase & Co. will add G-secs to its biggest emerging-market bond index. That could boost global investment in Indian debt by as much as $40 billion.
  8. The INR fell due to renewed USD demand and rising crude oil prices.
  9. The Bank of Japan is gradually exiting from ultra-easy policy settings involving short-selling the shortest tenor government bonds and anticipating a further weakening of the yen.
  10. The US treasury currently at 4.26%, dipped and then recovered on strong june PMI data

Market Data

Particulars

21/6/2024

14/6/2024

Change

10 Yr Benchmark Gsec (%)

6.97%

6.98%

-1 bps

Banking Liquidity (in Rs Billion)

146.94

148.2

0.85%

5 Yr OIS (%)

6.36%

6.34%

2 bps

1 Yr OIS (%)

6.78%

6.77%

1 bps

INRBonds Retail High Yield Index

9.57%

9.57%

0 bps

Nifty

23,501

23,466

0.15%

10 Yr SDL

7.36%

7.41%

-5 bps

91 Day T-Bill (%)

6.82%

6.84%

-2 bps

182 Day T-Bill (%)

6.96%

6.99%

-3.26 bps

10 Yr US Treasury Yield (%)

4.26%

4.22%

4 bps

US Junk Bond Yield (%)

7.58%

7.54%

4 bps

Brent Crude Oil (In USD per Barrel)

82.33

82.67

-0.41%

Primary & Secondary Corporate Bonds Data

Primary Public Debt Issuance

Maturity

Yield

IP Frequency

8.86% 360 One Prime Ltd

18 Months

9.22%

Monthly

9.16% 360 One Prime Ltd

18 Months

9.23%

Annual

8.98% 360 One Prime Ltd

24 Months

9.36%

Monthly

9.35% 360 One Prime Ltd

24 Months

9.35%

Annual

9.16% 360 One Prime Ltd

36 Months

9.55%

Monthly

9.55% 360 One Prime Ltd

36 Months

9.55%

Annual

9.21% 360 One Prime Ltd

60 Months

9.60%

Monthly

9.6% 360 One Prime Ltd

60 Months

9.60%

Annual

9.44% 360 One Prime Ltd

120 Months

9.86%

Monthly

9.85% 360 One Prime Ltd

120 Months

9.84%

Annual

Top 5 Secondary Retail Trades

Maturity

Yield

-

7.35% Rural Electrification Corporation Limited

31/7/2034

7.48%

8.55% HDB Financial Services Ltd

13/6/2034

8.56%

7.05% LIC Housing Finance Ltd

21/12/2030

8.15%

8.75% Punjab National Bank

27/3/2028

8.48%

7.89% Tata Capital ltd

26/7/2027

8.18%

Currency Market Data

Particulars

21/6/2024

14/6/2024

Change

USD/INR

83.568

83.55

0.02%

DXY

105.83

105.52

0.29%

USD/ Brazil Real

5.475

5.38

1.77%

EUR/ USD

1.0691

1.0702

-0.10%

USD/CNY

7.261

7.2558

0.07%

USD/JPY

159.82

157.38

1.55%

USD/ Russian Ruble

89.0619

89.5779

-0.58%