Weekly Market Review
January 29, 2016
Money Market | 29-Jan-16 | 22-Jan-16 |
---|---|---|
Call | 7.20% | 7.40% |
CBLO | 7.01% | 6.75% |
Mibor | 7.00% | 6.90% |
LAF o/s Repo (Rs Cr) | 13,214 | 19,551 |
Benchmark Securities | 27-Jan-16 | |||
---|---|---|---|---|
Security | Closing price | Previous price | Closing yield (%) | Previous yield (%) |
91 DTB | 98.36 | 98.22 | 7.23 | 7.28 |
364 DTB | 93.47 | 93.30 | 7.15 | 7.20 |
08.12% 2020 | 101.87 | 101.94 | 7.65 | 7.63 |
08.35% 2020 | 102.59 | 102.55 | 7.82 | 7.83 |
08.08% 2022 | 101.27 | 101.31 | 7.83 | 7.82 |
07.68% 2023 | 99.67 | 99.68 | 7.74 | 7.73 |
08.40% 2024 | 103.10 | 103.21 | 7.89 | 7.88 |
07.72% 2025 | 99.54 | 99.76 | 7.79 | 7.75 |
08.15% 2026 | 101.45 | 101.58 | 7.95 | 7.93 |
08.28% 2027 | 102.14 | 102.15 | 7.99 | 7.99 |
07.59% 2028 | 97.78 | 97.73 | 7.86 | 7.87 |
07.88% 2030 | 99.24 | 99.31 | 7.97 | 7.96 |
09.20% 2030 | 108.90 | 108.90 | 8.15 | 8.15 |
07.73% 2033 | 96.28 | 96.69 | 8.12 | 8.07 |
08.30% 2040 | 101.25 | 100.99 | 8.18 | 8.20 |
08.13% 2044 | 99.45 | 99.64 | 8.18 | 8.16 |
Data with two day lag
Call rate remained below RBI’s repo rate for most part of the week
The call money rate remained below the RBI's repo rate for most part of the holiday shortened week as the government’s month-end spending supported cash conditions. Earlier in the week, liquidity was tightened on increased demand for funds from banks on account of a truncated week. Also demand for funds usually remains strong at the beginning of a reporting fortnight as banks prefer to meet most of their reserve requirements in the first week itself. However the central bank's liquidity infusion via the variable rate repo window helped eased the liquidity condition. Meanwhile the call rate ended at 7.20% on January 29, 2016 vis-à-vis 7.30-7.40% on January 22, 2016.
Gilts ended steady on mixed cues
Government bond prices were range bound due to mixed cues in the shortened trading week. The 10-year benchmark - 7.72%, 2025 bond - ended at 7.78% on January 29, 2016, flat as compared with the previous week’s close, while the newly issued 10-year 7.59%, 2026 bond too ended steady at 7.64% on January 29, 2016 as compared with the previous week’s close. Weakness in the rupee and caution ahead of the US FOMC meeting outcome weighed on buying support. However sentiment remained positive on expectation of more open market bond purchase auctions by the RBI. Gilts also rose sharply in last session of the week due to recovery in the rupee, a favourable auction cut-offs at the weekly auction and positive cues from Japan.
ZCYC rose at the medium and longer end
The latest week’s ZCYC shifted upward at medium to longer end as yields rose sharply for medium term and long term securities.
Source: NSE
AAA Corporate Bond Yields and Spread | ||||
---|---|---|---|---|
Yield | Spread | |||
27-Jan | 20-Jan | 27-Jan | 20-Jan | |
1 year | 8.10 | 8.10 | 0.89 | 0.87 |
3 year | 8.16 | 8.22 | 0.70 | 0.71 |
5 year | 8.26 | 8.29 | 0.51 | 0.53 |
10 year | 8.39 | 8.38 | 0.45 | 0.45 |
Data with two day lag
Government Borrowing Programme (Rs. Cr.) | |
---|---|
Budgeted G-Sec Gross Borrowings for 2013-14 | 600000 |
Budgeted G-Sec Net Borrowings for 2012-13 | 456405 |
Budgeted Redemptions | 143595 |
G-Sec Gross Borrowings till Date | 541383 |
G-Sec Gross Borrowing Completed (%) | 90.23% |
Maturities till date | 144366 |
Net G-Sec Borrowings till date | 398634 |
364 Day T-Bill Gross Borrowings till date | 116000 |
OMO Purchases till date | 28270 |
SDL auction till date | 232937 |
Term of the week
LIBOR – It is a benchmark rate that some of the world’s leading banks charge each other for short-term loans. It is based on five currencies: U.S. dollar (USD), Euro (EUR), pound sterling (GBP), Japanese yen (JPY) and Swiss franc (CHF).