8 Jul 2024

Latest US Job Data Strengthens Expectations of 2 Rate Cuts This Year

author dp
Team INRBonds
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Weekly Market Highlights:

  1. 10 year 2034 Gsec yields closed at 6.99%, down by 2 bps on weekly basis.
  2. Weekly Gsec auction cut-off for the 2027, 2039 and 2053 stood at 6.9577%, 7.0391% and 7.0837% respectively.
  3. 3M and 6M T-bill auction data yields were at 6.78% and 6.9% respectively, down by 2 bps on a weekly basis.
  4. Domestic market liquidity deficit stood at Rs.133.22 billion.
  5. The INR Bonds high yield Index stood at 9.80% up 23 bps biweekly basis.
  6. The pound and euro reached three-week highs against the dollar amid weakening US economic data and the French and British elections.
  7. US nonfarm payroll employment increased by 206,0000 with an unemployment rate of 4.1%.
  8. The US treasury is currently at 4.28%, slips 12 bps as jobs report bolsters expectation for Fed cut.

Market Data

Particulars

5/7/2024

28/6/2024

Change

10 Yr Benchmark Gsec (%)

6.99%

7.01%

-2 bps

Banking Liquidity (in Rs Billion)

-133.22

92.65

-243.79%

5 Yr OIS (%)

6.42%

6.43%

-1 bps

1 Yr OIS (%)

6.78%

6.82%

-4 bps

INRBonds Retail High Yield Index

9.80%

9.80%

0 bps

Nifty

24,324

24,011

1.30%

10 Yr SDL

7.34%

7.34%

0 bps

91 Day T-Bill (%)

6.78%

6.80%

-2 bps

182 Day T-Bill (%)

6.90%

6.92%

-2 bps

10 Yr US Treasury Yield (%)

4.28%

4.40%

-12 bps

US Junk Bond Yield (%)

7.68%

7.58%

10 bps

Brent Crude Oil (In USD per Barrel)

83.44

84.84

-1.65%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

7.38% Cholamandalam Investment and Finance Company Ltd

31/7/2024

8.00%

7.71% HDFC Bank

20/12/2033

7.60%

7.62% National Bank For Agriculture And Rural Development

31/1/2028

7.65%

9.75% SBM Bank

5/4/2032

8.76%

7.23% Indian Railway Finance Corporation of India

15/10/2026

7.55%

Currency Market Data

Particulars

5/7/2024

28/6/2024

Change

USD/INR

83.468

83.378

0.11%

DXY

104.88

105.85

-0.92%

USD/ Brazil Real

5.495

5.594

-1.77%

EUR/ USD

1.0839

1.0715

1.16%

USD/CNY

7.2684

7.27

-0.02%

USD/JPY

160.74

160.85

-0.07%

USD/ Russian Ruble

88.0079

85.7505

2.63%