4 Nov 2024

Another Fed Rate Cut on the Horizon This Week?

author dp
Team INRBonds
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Weekly Market Highlights:

  1. The 10-year 2034 G-sec yield remained stable at 6.81% over the week.
  2. 3M and 6M T-bill auction data yields were stable at 6.51% and 6.64% respectively.
  3. India’s Forex Reserves dropped to Rs. 685 bn on 25th October as foreign currency assets decreased by Rs. 4.5 bn.
  4. The INR Bonds High Yield Index rose to 10.2%, up 34 basis points over the past two weeks, primarily due to the impact on issuances like Navi Finserv following RBI sanctions on NBFC-MFIs.
  5. FPIs turned net sellers for the first time in 6 months in the Indian bond market amid signs of economic slowdown as they sold Rs. 28 billion this october.
  6. The 10Y UST yield surged to 4.38% this week as markets anticipate a 25 bps Fed rate cut, while uncertainty lingers with the U.S. elections approaching on Tuesday.
  7. Oil prices are on the rise as OPEC agreed to extend its output cut by another month until the end of December.

 

Market Data

Particulars

1/11/2024

25/10/2024

Change

10 Yr Benchmark Gsec (%)

6.81%

6.80%

1 bps

Banking Liquidity (in Rs Billion)

153.6

67.2

128.57%

5 Yr OIS (%)

6.30%

6.28%

2 bps

1 Yr OIS (%)

6.57%

6.57%

0 bps

INRBonds Retail High Yield Index

10.20%

9.86%

34 bps

Nifty

24,048

24,181

-0.55%

10 Yr SDL

7.12%

7.13%

-1 bps

91 Day T-Bill (%)

6.51%

6.48%

3 bps

182 Day T-Bill (%)

6.64%

6.60%

4.3 bps

10 Yr US Treasury Yield (%)

4.38%

4.24%

14 bps

US Junk Bond Yield (%)

6.96%

6.96%

0 bps

Brent Crude Oil (In USD per Barrel)

73.13

75.97

-3.74%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

7.38% Bajaj Finance Limited

8/8/2025

7.80%

10.40% Navi Finserv Limited

13/8/2026

12.25%

8.4% HDB Financial Services Limited

22/12/1933

8.30%

13.50% Tapir Constructions Limited

18/1/2027

14.23%

10.5% Samman Capital Limited

25/9/2029

10.10%

Currency Market Data

Particulars

1/11/2024

25/10/2024

Change

USD/INR

84.073

84.095

-0.03%

DXY

103.69

104.26

-0.55%

USD/ Brazil Real

5.72

5.57

2.69%

EUR/ USD

1.0899

1.0793

0.98%

USD/CNY

7.0913

7.1199

-0.40%

USD/JPY

151.75

152.3

-0.36%

USD/ Russian Ruble

97.72

97.25

0.48%