Weekly Market Review
May 20, 2016
Money Market | 20-May-16 | 13-May-16 |
---|---|---|
Call | 6.35% | 6.15% |
CBLO | 6.51% | 5.55% |
Mibor | 6.55% | 6.61% |
LAF o/s Repo (Rs Cr) | 15,690 | 18,373 |
Benchmark Securities | 18-May-16 | |||
---|---|---|---|---|
Security | Closing price | Previous price | Closing yield (%) | Previous yield (%) |
91 DTB | 98.33 | 98.33 | 6.82 | 6.82 |
364 DTB | 93.64 | 93.54 | 6.95 | 6.93 |
08.12% 2020 | 102.61 | 102.68 | 7.43 | 7.42 |
08.08% 2022 | 102.32 | 102.42 | 7.60 | 7.58 |
7.16% 2022 | 97.51 | 97.58 | 7.63 | 7.61 |
07.68% 2023 | 100.49 | 100.60 | 7.59 | 7.57 |
07.72% 2025 | 100.46 | 100.70 | 7.65 | 7.61 |
07.59% 2026 | 100.77 | 101.09 | 7.48 | 7.43 |
08.15% 2026 | 102.68 | 102.85 | 7.77 | 7.75 |
08.28% 2027 | 103.62 | 103.71 | 7.79 | 7.78 |
07.59% 2029 | 99.34 | 99.70 | 7.67 | 7.63 |
07.88% 2030 | 100.87 | 101.18 | 7.77 | 7.74 |
09.20% 2030 | 111.01 | 111.20 | 7.90 | 7.88 |
07.73% 2034 | 99.60 | 99.75 | 7.77 | 7.75 |
08.30% 2040 | 104.49 | 104.29 | 7.88 | 7.90 |
08.13% 2045 | 103.00 | 103.24 | 7.87 | 7.84 |
Data with two day lag
Liquidity remained mostly comfortable
The borrowing rate remained mostly below the repo rate during the week as liquidity remained comfortable. The call money rate settled at 6.35% on May 20 as against 6.15% on May 13. Funds infused through term repo auctions by the central bank contributed to the fall in the call money rate. The RBI conducted three auctions – two of 14-day duration and one of 28-day duration – infusing a total of Rs 57,000 crore into the banking system. The call money rate rose briefly in the first session of the week owing to outflows towards payment of gilts purchased in the previous week's auction.
Gilts ended the week slightly higher
Government bond prices declined, with the yield of the 10-year benchmark 7.59% 2026 paper settling at 7.48% on May 20 as against 7.45% on May 13. Prices remained locked in a tight range for most of the week in the absence of strong triggers. Weakness in the rupee's exchange rate and the outcome of the auction for foreign institutional investment limits in sovereign debt lent negative cues. Prices fell as the minutes of the US Federal Open Market Committee's (FOMC's) April policy meeting led to investors scaling up expectation of a June rate hike by the US central bank. Bonds also dipped tracking a rise in global crude oil prices and US benchmark treasury yields. However, expectation of additional open market bond purchase announcements from the RBI provided support to prices and prevented a further fall.
ZCYC dipped at the short end
The latest week's ZCYC dipped at the short end, indicating lower yields for shorter term papers, and largely retaining its shape compared to the previous week's curve.
Source: NSE
AAA Corporate Bond Yields and Spread | ||||
---|---|---|---|---|
Yield | Spread | |||
18-May | 11-May | 18-May | 11-May | |
1 year | 7.66 | 7.70 | 0.74 | 0.80 |
3 year | 7.85 | 7.87 | 0.47 | 0.50 |
5 year | 8.10 | 8.09 | 0.61 | 0.61 |
10 year | 8.17 | 8.16 | 0.56 | 0.60 |
Data with two day lag
Government Borrowing Programme (Rs. Cr.) | |
---|---|
Budgeted G-Sec Gross Borrowings for 2016-17 | 600000 |
Budgeted G-Sec Net Borrowings for 2016-17 | 425181 |
Budgeted Redemptions | 174,819 |
G-Sec Gross Borrowings till Date | 90,000 |
G-Sec Gross Borrowing Completed (%) | 12.50% |
Maturities till date | 49614 |
Net G-Sec Borrowings till date | 25386 |
364 Day T-Bill Gross Borrowings till date | 18000 |
OMO Purchases till date | 40,014 |
SDL auction till date | 24355 |
Term of the week
When Issued Security – The term refers to a conditional security which has been authorized for issuance but has not yet been actually issued.