Fixed Income Markets Snapshots For The Week
- RBI has been heavy seller of USD, sucking out liquidity in the process
- Turkey is the new kid on the volatility block
- RBI is paying Rs 500 billion dividend to the government, Rs 50 billion higher than budgeted
- Liquidity will tighten in September
Credit Spreads Snapshots For The Week
- 3 and 5 year AAA yields rose last
- 3 and 12 months CD yields fell.
- CP yields were stable.
- Ultratech Cement Lts, rated AAA, issued Rs 3.6 billion, 3 years bond at 8.36%, 56 bps spreads
- HDB Financial Services Limited (HDFC group company), rated AAA, issued Rs 2 billion,perpetual bond at 9.40%, 147bps spreads
- Indiabulls Housing Finance Limited, rated AAA, issued Rs 10 billion,10 years bond at 8.90%, 97 bps spreads.
- FII debt utilization status stood at 71.22% of total limits, up 62 bps week on week on as FIIs bought INR bonds.
G-sec Curve Spread Snapshots For The Week
- The yield curve steepened at the extreme long end.
- Off the run bond spreads largely rose last week.
- Spread between 10-year SDL with 10-year G-sec fell by 1 bps and came in at 64 bps.