15 Jul 2024

Markets Expected to Remain Range-Bound as World Prepares for 'Trump Trade'

author dp
Team INRBonds
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Weekly Market Highlights:

  1. 10 year 2034 Gsec yields closed at 6.98%, down by 1 bps on weekly basis.
  2. Weekly Gsec auction cut-off for the 2031 and 2064 stood at 6.989% and 7.1025% respectively.
  3. 3M and 6M T-bill auction data yields were at 6.76% and 6.87% respectively, down by 2-3 bps on a weekly basis.
  4. Domestic market liquidity deficit stood at Rs.130.38 billion.
  5. The INR Bonds high yield Index stood at 9.80% up 23 bps biweekly basis.
  6. India CPI at 5.08% up from 4.75%, Food Inflation at 9.36% up from 8.69% and IIP growth rate at 5.7%.
  7. US Core CPI increases by 0.1% MoM, bolstering predictions for Fed rate cuts beginning September 2024.
  8. Spot gold climbed 1.5% to $2,406.99 per ounce marking its highest level since May 22, silver up 2.7% as US Inflation data boosts rate-cut expectations
  9. The US treasury drops 9 bps to 4.19% following unexpected -0.1% MoM contraction in June CPI.

Market Data

Particulars

12/7/2024

5/7/2024

Change

10 Yr Benchmark Gsec (%)

6.98%

6.99%

-1 bps

Banking Liquidity (in Rs Billion)

-130.38

-133.22

2.13%

5 Yr OIS (%)

6.34%

6.42%

-8 bps

1 Yr OIS (%)

6.74%

6.78%

-4 bps

INRBonds Retail High Yield Index

9.80%

9.80%

0 bps

Nifty

24,501

24,324

0.73%

10 Yr SDL

7.32%

7.34%

-2 bps

91 Day T-Bill (%)

6.76%

6.78%

-2 bps

182 Day T-Bill (%)

6.87%

6.90%

-3.01 bps

10 Yr US Treasury Yield (%)

4.19%

4.28%

-9.3 bps

US Junk Bond Yield (%)

7.43%

7.68%

-25 bps

Brent Crude Oil (In USD per Barrel)

82.21

83.44

-1.47%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

12% Annapurna Finance Ltd

24/1/2030

11.47%

9.84% Spandana Spoorthy Financial Ltd

28/6/2026

11%

9.09% Muthoot Finance Ltd

3/5/2029

9.01%

12.5% Krazybee Services Pvt Ltd

12/12/2025

13%

8.75% Shriram Finance Ltd

4/5/2026

9.08%

Currency Market Data

Particulars

12/7/2024

5/7/2024

Change

USD/INR

83.519

83.468

0.06%

DXY

104.08

104.88

-0.76%

USD/ Brazil Real

5.475

5.495

-0.36%

EUR/ USD

1.0907

1.0839

0.63%

USD/CNY

7.2504

7.2684

-0.25%

USD/JPY

157.9

160.74

-1.77%

USD/ Russian Ruble

87.8791

88.0079

-0.15%