Fixed Income Markets Snapshots For The Week
- 10 year benchmark G-sec yield fell post RBI policy
- RBI held rates status quo despite changing policy stance to tight from neutral. IL&FS mess made RBI keep rates on hold
- 10 year UST yields shoot up as Amazon hikes minimum wage
- RBI announces Rs 350 billion of OMO purchase auctions for this month
- Liquidity eases on government spending
Credit Spreads Snapshots For The Week
- Short end credit spreads rose last week post RBI policy
- Inverted AAA credit curve
- CP yields trended downwrds.
- REC, rated AAA,issued Rs 30 billion,10 year bond at 8.70%, 61 bps spreads
- Aadhar Housing Finance Ltd, rated AA+, issued Rs 6.7 billion, 5 year bond at 9.6%, 149 bps spreads
- L&T Metrorail Hyderabad Ltd, rated AAA,issued Rs 1 billion,12 year bond at 9.55%, 123 bps spreads
- FII debt utilization status stood at 62.71% of total limits, as FIIs sold Rs 32.18 billion G-secs and corporate bonds.
G-sec Curve Spread Snapshots For The Week
- The yield curve flattened marginally at the long end of the curve.
- 5-year G-sec yields now trade lower than 10-year G-sec yields.
- 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 66 bps, higher on weekly basis.