30 Sept 2024

RBI MPC Policy-Meeting in Focus Amid Dovish Global Trends

author dp
Team INRBonds
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Weekly Market Highlights:

  1. The 10 year 2034 G-sec yield closed at 6.72% this week vs 6.76% last week.
  2. The outcome of the RBI MPC meeting will be a key focus, especially as central banks globally have adopted a more dovish stance.
  3. Foreign portfolio and institutional inflows totaling USD 4.3 billion as of August 2024. Forex reserves have also hit a record high of USD 692 billion.
  4. 3M and 6M T-bill auction data yields were stable at 6.65% and 6.72% respectively.
  5. The INR Bonds high yield Index stood at 9.907% down 2 bps fortnightly..
  6. Government borrowing for the second half of FY25 aligns with the budgeted target of approximately Rs. 6.61 trillion. In the first half, borrowing was estimated at Rs. 7 trillion, with 40% raised through long-term bonds.
  7. China plans to issue USD 284.43 billion in special sovereign bonds as part of a fiscal stimulus.

Market Data

Particulars

20/9/2024

20/9/2024

Change

10 Yr Benchmark Gsec (%)

6.72%

6.76%

-4 bps

Banking Liquidity (in Rs Billion)

44.34

24.82

78.65%

5 Yr OIS (%)

6.03%

6.01%

2 bps

1 Yr OIS (%)

6.40%

6.39%

1 bps

INRBonds Retail High Yield Index

9.91%

9.92%

-2 bps

Nifty

26,179

25,791

1.50%

10 Yr SDL

7.10%

7.05%

5 bps

91 Day T-Bill (%)

6.65%

6.65%

0 bps

182 Day T-Bill (%)

6.72%

6.72%

0 bps

10 Yr US Treasury Yield (%)

3.75%

3.74%

1 bps

US Junk Bond Yield (%)

6.76%

6.66%

10 bps

Brent Crude Oil (In USD per Barrel)

71.98

73.93

-2.64%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

9.15% Shriram Finance Limited

28/6/2029

9.02%

9.50% Hinduja Leyland Finance Limited

29/11/2029

9.85%

11.10% Spandana Sphoorty Financial Limited

24/4/2026

11.30%

10.30% Indostar Capital Finance Limited

25/9/2027

10.70%

10.45% Muthoot Fincorp Limited

24/12/1932

11.26%

Currency Market Data

Particulars

20/9/2024

20/9/2024

Change

USD/INR

82.723

83.474

-0.90%

DXY

100.42

100.74

-0.32%

USD/ Brazil Real

5.3

5.38

-1.49%

EUR/ USD

1.1163

1.1162

0.01%

USD/CNY

7.011

7.0505

-0.56%

USD/JPY

142.19

143.91

-1.20%

USD/ Russian Ruble

94.3107

92.3505

2.12%