Weekly Market Review | srei
  • <none>

Weekly Market Review

February 14, 2014

Money Market 14-Feb-14 7-Feb-14
Call 8.85% 8.50%
CBLO 8.85% 7.95%
Mibor 9.04% 8.15%
LAF o/s Repo (Rs Cr) 40702 34974
Benchmark Securities 12-Feb-14
Security Closing price Previous price Closing yield (%) Previous yield (%)
91 DTB 97.79 97.82 9.04 8.95
364 DTB 91.93 91.83 8.98 8.92
07.28%  2019 92.98 93.52 8,97 8.83
08.19%  2020 95.75 96.26 9.13 9.01
08.12%   2020 94.90 95.54 9.14 9.00
08.79%   2021 97.88 98.25 9.18 9.11
07.16%   2023 87.45 88.00 9.20 9.10
08.83%   2023 100.10 100.78 8.81 8.71
09.15%  2024 99.79 100.25 9.18 9.11
08.20%   2025 92.52 93.38 9.26 9.13
08.24%   2027 92.25 93.23 9.28 9.14
08.28%   2027 92.34 93.46 9.28 9.13
09.20%   2030 99.90 100.60 9.21 9.13
08.32%   2032 92.00 92.37 9.23 9.15
08.33%  2036 91.50 92.81 9.23 9.13
08.30%   2042 90.75 91.54 9.22 9.11

Data with two day lag

Indian call money rate rose on PSU banks’ two day strike and on tight liquidity situation

The call rate rose over the week to end at 8.80-8.85% on February 14 as compared with 8.30-8.50% on February 7 on tight liquidity due to the two day public sector bank employee strike and on strong demand for funds from banks to meet funding requirements. The RBI conducted 9-day and 28-day term repo auctions of Rs 10,000 cr and Rs 20,000 cr on February 12 and February 14 respectively to ease the tight liquidity situation.

Gilt prices fell caution ahead of the vote-on-account scheduled on February 17

Gilt prices ended down in the week ended February 14 on fears that the government's market borrowing numbers could be higher than expected at the vote-on-account scheduled for February 17. High cutoff yields set at the auction of state development loans also weighed on bond prices. Bonds were also under heavy pressure earlier in the week as market participants’ maintained caution ahead of the release of CPI and WPI inflation data. However a further decline in gilt prices was limited by positive CPI and WPI inflation data, strength in the rupee and value buying. Appetite for bonds also remained firm following the end of the government’s gilt auctions for the current fiscal year last week. The 10-year benchmark 8.83% 2023 bond ended at 8.81% yield on February 14 as against 8.74% yield on February 7.

Top 5 Traded Securities

ZCYC curve remained flat at both ends

ZCYC curve remained almost flat at both shorter and longer end of the zero coupon yield curve.

ZCYC Curve

Source: NSE

AAA Corporate Bond Yields and Spread
  Yield Spread
  12-Feb 5-Feb 12-Feb 5-Feb
1 year 9.79 9.78 0.63 0.70
3 year 9.72 9.67 0.98 0.90
5 year 9.70 9.68 0.65 0.75
10 year 9.64 9.56 0.32 0.33

Data with two day lag

Government Borrowing Programme (Rs. Cr.)
Budgeted G-Sec Gross Borrowings for 2013-14 579009
Budgeted G-Sec Net Borrowings for 2012-13 484000
Budgeted Redemptions 95009
G-Sec Gross Borrowings till Date 512251
G-Sec Gross Borrowing Completed (%) 90.20%
Maturities till date 74735
Net G-Sec Borrowings till date 447516
364 Day T-Bill Gross Borrowings till date 119000
OMO Purchases till date 52816
SDL auction till date 179707

Term of the week

Statutory Liquidity Ratio (SLR) – SLR is the amount of money that is invested in certain specified securities predominantly central government and state government securities.

Saturday, February 15, 2014