Fixed Income Markets Snapshots For The Week
- Fed hiked rates and ECB signaled end of bond purchases, last week.
- G-sec yields fell from highs on value buying & on RBI SDL mark up removal.
- Government spending is keeping the system in liquidity surplus mode.
- Advance tax outflows to lower system liquidity
Credit Spreads Snapshots For The Week
- FIIs are allowed to invest in T-bills and Short Term Corporate Bonds
- 3, 5 and 10 year AAA yields decline
- 12 months CP, CD yields fall
- FII debt utilization status at 71.2% of total limits, down 63 bps week on week on FII selling of INRBONDS
G-sec Curve Spread Snapshots For The Week
- 5-year G-sec yields is trading higher than 10-year G-sec yields on segmentation.
- Spread between 10-year G-sec and extreme long bond (6.62% 2051) fell sharply to 8 bps.
- Extreme long-end bond yields largely remain untraded.
- Spread between 10-year SDL with 10-year G-sec rose and came in at 65 bps in the last SDL auction. Spreads rose on the back of RBI removing the 25bps mark up over G-secs for banks SDL investments.