11 Nov 2024

Domestic CPI to Set Tone for RBI Rate Cut

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 6.44% and 6.63% respectively.
  3. The Rupee dropped to a record low of 84.37 this week due to outflows from FPI and FII. This decline signals a shift in FPI/FII sentiment after China introduced a stimulus package aimed at reducing its debt, enhancing its appeal among emerging markets.
  4. The BoE on Thursday cut interest rates for the second time since covid, reducing the rate from 5% to 4.75%.  
  5. The U.S. FED has reduced its key interest rate by 0.25% amid uncertainties following the election.The Fed Chair expressed concerns about the nation's fiscal debt but remained confident in the strength of the U.S. economy.
  6. Post the election result and FED’s rate cut the 10Y UST dipped to 4.30% after reaching a high of 4.45%.
  7. Oil futures dropped by 1.23% on Friday as fears eased over the impact of Hurricane Rafael in the U.S. Gulf.

 

Market Data

Particulars

8/11/2024

1/11/2024

Change

10 Yr Benchmark Gsec (%)

6.81%

6.81%

1 bps

Banking Liquidity (in Rs Billion)

244.73

153.6

-59.33%

5 Yr OIS (%)

6.23%

6.30%

-7 bps

1 Yr OIS (%)

6.51%

6.57%

-5 bps

INRBonds Retail High Yield Index

10.20%

10.20%

0 bps

Nifty

24,148

24,048

0.42%

10 Yr SDL

7.12%

-712 bps

91 Day T-Bill (%)

6.44%

6.51%

-7 bps

182 Day T-Bill (%)

6.83%

6.64%

19 bps

10 Yr US Treasury Yield (%)

4.30%

4.38%

-8.01 bps

US Junk Bond Yield (%)

6.96%

6.96%

0 bps

Brent Crude Oil (In USD per Barrel)

73.9

73.13

1.05%

Primary & Secondary Corporate Bonds Data

Top 5 Secondary Retail Trades

Maturity

Yield

-

9.57% MAS Financial Services Limited

21/6/2027

9.95%

10.75% AU Small Finance Bank Limited

15/12/2028

9.60%

11.80% Namdev Finvest Private Limited

5/7/2027

12.50%

11.10% ESAF Small Finance Bank Limited

20/4/1931

11.56%

10.50% Spandana Sphoorty Financial Limited

14/4/2027

10.76%

Currency Market Data

Particulars

8/11/2024

25/10/2024

Change

USD/INR

84.395

84.095

0.36%

DXY

105

104.26

0.71%

USD/ Brazil Real

5.58

5.57

0.18%

EUR/ USD

1.072

1.0793

-0.68%

USD/CNY

7.1785

7.1199

0.82%

USD/JPY

152.63

152.3

0.22%

USD/ Russian Ruble

97.5955

97.25

0.36%