Weekly Market Highlights:
- The 10 year 2034 G-sec yield fell to 6.79% over the week India August CPI came above expectations at 3.65%. This may further delay a rate cut by the RBI.
- India core inflation remained flat at 3.4% while IIP growth marginally rose to 4.8% for august.
- 3M and 6M T-bill auction data yields were at 6.65% and 6.72% respectively, up 2 bps since last week.
- The INR Bonds high yield Index stood at 9.755% up 13 bps fortnightly.
- The ECB lowered its deposit rate from 3.75% to 3.5%, marking the 2nd cut this year after June, while holding rates steady in July and pausing in August. The ECB faces the challenge of balancing weak economic growth with the goal of returning inflation to the ECB's 2% target. ECB has also cut the refinancing rate by 60 bps.
- The 10Y UST was down to 3.65% as markets are bracing for a FED rate cut on 18th September as US inflation hit a 43 month low at 2.5% in August 2024.
- Globally sovereign bond yields dipped after weak US CPI data and ECB cutting rates. FED’s outlook and the rate cut will drive the bond market in the week ahead.
Market Data | |||
Particulars | 13/9/2024 | 6/9/2024 | Change |
10 Yr Benchmark Gsec (%) | 6.79% | 6.85% | -6 bps |
Banking Liquidity (in Rs Billion) | 196.1 | 255.3 | -23.19% |
5 Yr OIS (%) | 5.94% | 6.05% | -11 bps |
1 Yr OIS (%) | 6.37% | 6.47% | -9 bps |
INRBonds Retail High Yield Index | 9.76% | 9.63% | 13 bps |
Nifty | 25,357 | 24,852 | 2.03% |
10 Yr SDL | 7.17% | 7.24% | -7 bps |
91 Day T-Bill (%) | 6.65% | 6.63% | 2 bps |
182 Day T-Bill (%) | 6.72% | 6.73% | -0.62 bps |
10 Yr US Treasury Yield (%) | 3.65% | 3.74% | -9.01 bps |
US Junk Bond Yield (%) | 6.96% | 6.94% | 2 bps |
Brent Crude Oil (In USD per Barrel) | 71.49 | 71.6 | -0.15% |
Primary & Secondary Corporate Bonds Data | |||
Top 5 Secondary Retail Trades | Maturity | Yield | - |
9.90% IFCI Limited | 5/11/2027 | 10.20% | |
9.50% Aye Finance Private Limited | 7/10/2025 | 11.52% | |
10.05% Muthoot Fincorp Limited | 29/4/1930 | 10.40% | |
11.50% Earlysalary Services Private Limited | 5/8/2025 | 11.25% | |
10.50% Spandana Sphoorty Financial Limited | 14/4/2027 | 10.77% | |
Currency Market Data | |||
Particulars | 13/9/2024 | 6/9/2024 | Change |
USD/INR | 83.88 | 83.976 | -0.11% |
DXY | 101.11 | 101.25 | -0.14% |
USD/ Brazil Real | 5.44 | 5.45 | -0.18% |
EUR/ USD | 1.0176 | 1.108 | -8.16% |
USD/CNY | 7.093 | 7.1097 | -0.23% |
USD/JPY | 140.82 | 142.84 | -1.41% |
USD/ Russian Ruble | 89.996 | 90.113 | -0.13% |