Government Budget on key focus with capital expenditure, borrowing, and deficit targets in the spotlight.

Weekly Market Highlights:

1. 10 year 2034 Gsec yields closed at 6.97%, down by 1 bps on weekly basis.
2. Weekly Gsec auction cut-off for the 2034 and 2073 stood at 6.9788% and 7.0938% respectively.
3. 3M and 6M T-bill auction data yields were at 6.74% and 6.85% respectively, down by 2 bps on a weekly basis.
4. RBI conducted ₹3400 of OMO sale to counteract excess liquidity caused by FII/FPI inflows following the inclusion of G-secs in the J.P. Morgan Government Bond Index-Emerging Markets (GBI-EM).
5. The July 23rd budget is anticipated to announce significant subsidies aimed at boosting the rural economic growth and fostering microfinance sector growth.
6. Domestic market liquidity deficit stood at Rs.139.48 billion.
7. The INR Bonds high yield Index stood at 9.77% down 2 bps biweekly basis.
8. USD/INR closes higher around 83.73 amid strong USD and profit-taking in the Indian equity market.
9. UK inflation held steady at 2% at the BOE’s target showing signs of sustained easing.
10. The US treasury rose 5.31 bps to 4.24% as the FED Chairman Powell said rate cuts would begin before the inflation reaches the 2% target.