Fixed Income Markets Snapshots For The Week
- RBI will release MPC decision on policy on the 1st of August 2018
- Policy review is on the backdrop of higher core inflation, strong corporate earnings and a strong US economy
- Government shows cash surplus after 3 months of hectic spending
- Bond markets were largely stable last week, awaiting RBI policy decision this week
Credit Spreads Snapshots For The Week
- 3, 5 and 10 year AAA yields rose last week
- 3 months CP, CD yields rose.
- 12 months CP, CD yields were stable.
- Aditya Birla Finance Ltd AAA rated issued Rs 3.35 billion,3 years bond at 8.58%,101 bps spreads
- Sundaram Finance Ltd AAA rated issued Rs 1.25 billion,2 years bond at 8.61%,94 bps spreads
- L&T infra debt fund limited AAA rated issued Rs 500 million,7 years bond at 9.05%,121 bps spreads.
- FII debt utilization status at 70.00% of total limits, down 14 bps week on week on as FII sold government bonds.
G-sec Curve Spread Snapshots For The Week
- The yield curve steepened
- Extreme long end of the curve remains untraded.
- Spread between 10-year SDL with 10-year G-sec remains flat at 67 bps.