Weekly Market Review | srei
  • <none>

Weekly Market Review

April 25, 2014

Money Market 25-Apr-14 17-Apr-14
Call

8.50%

8.30%
CBLO 8.63% 7.63%
Mibor 8.44% 7.89
LAF o/s Repo (Rs Cr) 21,009 11,200
Benchmark Securities 23-Apr-14
Security Closing price Previous price Closing yield (%) Previous yield (%)
91 DTB 97.83 97.85 8.81 8.85
364 DTB 92.00 91.81 8.89 8.95
07.28%  2019 93.79 93.27 8.81 8.94
08.19%  2020 96.30 95.80 9.03 9.14
08.12%   2020 95.76 95.00 8.98 9.14
08.79%   2021 96.39 95.38 8.99 9.17
07.16%   2023 87.99 87.25 9.13 9.26
08.83%   2023 99.85 99.13 8.85 8.96
09.15%  2024 99.87 99.37 9.17 9.24
08.20%   2025 93.35 92.41 9.15 9.29
08.24%   2027 93.34 92.16 9.13 9.30
08.28%   2027 93.50 92.42 9.13 9.28
09.20%   2030 100.91 99.63 9.09 9.24
08.32%   2032 92.85 91.60 9.13 9.28
08.33%  2036 92.35 91.12 9.14 9.28
08.30%   2042 91.84 90.30 9.10 9.27

Data with one day lag

Indian call money rates rose due to strong demand in the last session of the week

Interbank call money rate ended at 8.45-8.50% on April 25 versus 8.25-8.30% on April 17. Interbank call money rate rose due to strong demand in the last session of the week from banks to meet their weekend reserve needs as well as private companies and mutual funds. Over the week however, call money rates followed a downward trend due to improved liquidity on gilt redemptions last week. Demand for funds also eased on redemption of state development loans and treasury bills during the week.

Gilt prices fell on higher than expected cutoff yields at the weekly auction

Gilt prices fell over the week taking cues from the RBI’s weekly gilt auction on April 25. Gilts began the week positively after the RBI’s successful completion of its Rs 20,000 cr gilt auction last week and due to strong demand at the state development loan auctions. However higher than expected cutoff yields set by the RBI at its gilt sale on April 25 prevented further gains. Apprehension that the benchmark bond would be among the gilts sold before the RBI announced the selection of gilts for the week led to a rise in yields. Inflation fears after the IMD forecasted below average rainfall, sporadic profit booking, and a weak rupee also cut some gains. The yield of the 10-year benchmark 8.83% 2023 bond rose to 8.88% on April 25 from 8.85% on April 17.

Top 5 Traded Securities

ZCYC curve rose for near term papers

ZCYC curve shifted downwards indicating lower yields across almost all maturity papers except for near term papers which saw their yields increase, compared to the previous week’s curve.

ZCYC Curve

Source: NSE

AAA Corporate Bond Yields and Spread
  Yield Spread
  23-Apr 16-Apr 23-Apr 16-Apr
1 year 9.40 9.43 0.46 0.29
3 year 9.40 9.52 0.56 0.64
5 year 9.52 9.72 0.61 0.62
10 year 9.58 9.75 0.29 0.31

Data with one day lag

Government Borrowing Programme (Rs. Cr.)
Budgeted G-Sec Gross Borrowings for 2013-14 597000
Budgeted G-Sec Net Borrowings for 2012-13 457000
Budgeted Redemptions 140000
G-Sec Gross Borrowings till Date 52000
G-Sec Gross Borrowing Completed (%) 8.71%
Maturities till date 40751
Net G-Sec Borrowings till date 11249
364 Day T-Bill Gross Borrowings till date 12000
OMO Purchases till date 0
SDL auction till date 14301

Term of the week

Market Stabilization Scheme (MSS) The MSS came into existence with the primary aim of aiding the sterilization operations of the RBI. Bonds under MSS are launched to mop up extra liquidity in the system, caused by the RBI’s dollar sale in the market..

Saturday, April 26, 2014