29 Jul 2024

Union Budget and RBI's circular for better liquidity management positive for the bond market as yields fall to lowest points since April 2022.

author dp
Team INRBonds
Share via:LinkedIn LogoTwitter logo

Weekly Market Highlights:

  1. 10 year 2034 Gsec yields closed at 6.94%, down by 3 bps on weekly basis,after the central bank proposed a draft circular aimed at improving liquidity management for banks.
  2. Weekly Gsec auction cut-off for the 2029, 2039 and 2064 stood at 6.8279%, 6.9758% and 7.0686% respectively.
  3. 3M and 6M T-bill auction data yields were at 6.71% and 6.82% respectively, down by 3 bps on a weekly basis.
  4. Union budget 2024-25 positive for the bond market with a lower fiscal deficit estimate at 4.9% of GDP and borrowing further reduced to Rs.14.01 trillion.
  5. Proposed capital gains taxation of 20% and 12.5% respectively expected to drive money into the bond market.
  6. Domestic market liquidity deficit stood at Rs.85.92 billion.
  7. The INR Bonds high yield Index stood at 9.77% down 2 bps biweekly basis.
  8. The US 10-year fell by 4.61 bps to 4.19% as the US PCE price index climbed 2.5% after a 2.6% rise in May.

Market Data

Particulars

26/7/2024

19/7/2024

Change

10 Yr Benchmark Gsec (%)

6.94%

6.97%

-3 bps

Banking Liquidity (in Rs Billion)

-85.92

-139.48

38.40%

5 Yr OIS (%)

6.26%

6.30%

-4 bps

1 Yr OIS (%)

6.70%

6.72%

-2 bps

INRBonds Retail High Yield Index

9.77%

9.77%

0 bps

Nifty

24,834

24,531

1.24%

10 Yr SDL

7.36%

7.35%

1 bps

91 Day T-Bill (%)

6.71%

6.74%

-3 bps

182 Day T-Bill (%)

6.82%

6.85%

-2.61 bps

10 Yr US Treasury Yield (%)

4.19%

4.24%

-4.61 bps

US Junk Bond Yield (%)

7.32%

7.30%

2 bps

Brent Crude Oil (In USD per Barrel)

81.3

82.58

-1.55%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

10.25% Navi Finserv Ltd

15/9/2025

11.33%

9.95% Indostar Capital Finance Ltd

28/11/2026

9.95%

12% Annapurna Finance Ltd

24/1/2030

11.27%

10.75% Spandana Sphoorty Financial Ltd

21/12/2026

11.65%

9.2% Shriram Finance Ltd

22/5/2029

9.14%

Currency Market Data

Particulars

26/7/2024

19/7/2024

Change

USD/INR

83.724

83.7298

-0.01%

DXY

104.33

104.36

-0.03%

USD/ Brazil Real

5.69

5.63

1.07%

EUR/ USD

1.0856

1.0885

-0.27%

USD/CNY

7.2511

7.2696

-0.25%

USD/JPY

153.77

157.48

-2.36%

USD/ Russian Ruble

86.1075

87.6963

-1.81%