1 Jul 2024

Liquidity is expected to ease after July as the government resumes spending post the July budget

author dp
Team INRBonds
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Weekly Market Highlights:

  1. 10 year 2034 Gsec yields closed at 7.01%, up by 4 bps on weekly basis.
  2. Weekly Gsec auction cut-off for the 2034 and 2064 stood at 7.02% and 7.1% respectively.
  3. Weekly T-bill auction data shows 3M and 6M and 1 year yields were at 6.80%, 6.92%  and 6.95% respectively, down by 1-4 bps compared to previous week auctions.
  4. Domestic market liquidity surplus stood at Rs.92.65 billion.
  5. Rising crude prices limit the appreciation potential of the Indian Rupee, as India is the world's third-largest oil consumer.
  6. The INR Bonds high yield Index stood at 9.80% up 23 bps biweekly basis.
  7. The Russian Ruble has appreciated against the USD due to improved investor sentiment following new US sanctions. 
  8. The US treasury is currently at 4.40%, up 14 bps amid growing concerns about global inflation and US election.

Market Data

Particulars

28/6/2024

21/6/2024

Change

10 Yr Benchmark Gsec (%)

7.01%

6.97%

4 bps

Banking Liquidity (in Rs Billion)

92.65

146.94

36.95%

5 Yr OIS (%)

6.43%

6.36%

7 bps

1 Yr OIS (%)

6.82%

6.78%

4 bps

INRBonds Retail High Yield Index

9.80%

9.57%

23 bps

Nifty

24,011

23,501

2.17%

10 Yr SDL

7.34%

7.36%

-2 bps

91 Day T-Bill (%)

6.80%

6.82%

-1 bps

182 Day T-Bill (%)

6.92%

6.96%

-4 bps

10 Yr US Treasury Yield (%)

4.40%

4.26%

14 bps

US Junk Bond Yield (%)

7.58%

7.58%

0 bps

Brent Crude Oil (In USD per Barrel)

84.84

82.33

3.05%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

8.55% Mas Financial Services Limited

6/12/2025

10.10%

7.62% Export Import Bank of India

1/9/2026

7.75%

8.5% State Bank of India

31/12/1999

8.77%

2% Vivitri Capital Private Limited

18/4/2025

8.52%

8.49% National Highways Authority of India

5/2/2029

7.51%

Currency Market Data

Particulars

28/6/2024

21/6/2024

Change

USD/INR

83.378

83.568

-0.23%

DXY

105.85

105.83

0.02%

USD/ Brazil Real

5.594

5.475

2.17%

EUR/ USD

1.0715

1.0691

0.22%

USD/CNY

7.27

7.261

0.12%

USD/JPY

160.85

159.82

0.64%

USD/ Russian Ruble

85.7505

89.0619

-3.72%