Fixed Income Markets Snapshots For The Week
- Government is borrowing than budgeted in the 2nd half of fiscal 2018-19
- RBI likely to raise rates this week
- Liquidity will figure prominently in the policy review this week
- Fed hikes rates and guides for more hikes
- Gsec yields to stay ranged
Credit Spreads Snapshots For The Week
- Yields on NBFC CPs spiked last week as MFs have turned risk averse
- Inverted AAA credit curve
- 12 months CD yields trended upwards.
- HDFC Credila Financial Services Pvt Ltd, rated AAA,issued Rs 3 billion,2 year bond at 9.0%, 95 bps spreads
- TATA Capital Housing Ltd, rated AAA, issued Rs 50 billion, 5 year bond at 8.8%, 50 bps spreads
- IndiaBulls Commercial Credit Ltd, rated AAA,issued Rs 20 billion,10 year bond at 9.10%, 87 bps spreads
- FII debt utilization status stood at 69.09% of total limits, down 59 bps week on week as FIIs sold G-secs and corporate bonds.
G-sec Curve Spread Snapshots For The Week
- The yield curve is distorted at the long end of the curve.
- 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 63 bps, higher on weekly basis.