Fixed Income Markets Snapshots For The Week
- 10 year benchmark G-sec yields fell last week
- INR pulled back from record lows
- Credit markets stabilized
- RBI bought Rs 10 billion of bonds through OMO purchase auction last week and has announced auction of 59 day CMB for Rs 150 billion this week
- CPI inflation prints below 4% for September 2018, Core CPI inflation estimated at 5.8%. IIP growth at 4.3% for August 2018
- Liquidity moved into deficit on RBI fx intervention and on festive season demand for money
Credit Spreads Snapshots For The Week
- Short end credit spreads rose last week
- CP and CD yields stabilize at higher levels
- NABARD, rated AAA,issued Rs 28 billion,10 year bond at 8.77%, 77 bps spreads
- SREI Equipment Finance, rated AA+, issued Rs 50 million, 10 year bond at 10.25%, 206 bps spreads
- PFC, rated AAA, issued Rs 30 billion, 10 year bond at 8.95%, 76 bps spreads
- FII debt utilization status stood at 61.45% of total limits. FIIs sold Rs 81.45 billion G-secs and corporate bonds.
G-sec Curve Spread Snapshots For The Week
- The yield curve steepened at the long end of the curve.
- Off the run bond spreads with the 10-year G-sec largely fell last week.
- Spread between 10-year SDL with 10-year G-sec came in at 67 bps in the SDL auctions, 1 bps up from last week.