Fixed Income Markets Snapshots For The Week
- Government could borrow less than budgeted in the 2nd half of fiscal 2018-19
- Credit markets seeing volatility on IL&FS default
- RBI will buy bonds through OMOs to ease liquidity
- Liquidity into deep deficit on advance tax outflows
- Gsec yields to stay pressured into RBI policy in October
Credit Spreads Snapshots For The Week
- Inverted AAA credit curve
- NBFC 3,5 and 10 year AAA yields rose last week
- 12 months CP and CD yields trended upwards.
- Bajaj Finance, rated AAA,issued Rs 40.5 billion,5 year bond at 8.8%, 63 bps spreads
- Yes Bank, rated AAA, issued Rs 40 billion, 10 year bond at 9.12%, 97 bps spreads
- Citi Corp Finance, rated AAA,issued Rs 10 billion,1.25 year bond at 8.55%, 100 bps spreads
- FII debt utilization status stood at 69.68% of total limits, down 46 bps week on week as FIIs sold G-secs and corporate bonds.
G-sec Curve Spread Snapshots For The Week
- The yield curve flattened at the long end of the curve.
- On the run long end bonds & Off the run bonds were largely untraded.
- Off the run bond spreads with the 10-year G-sec were mixed.
- Spread between 10-year SDL with 10-year G-sec was at 56 bps, down week on week.