India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
OIS rates rise ahead of policy review, gilts remain range bound
Government securities
Yields remained range bond as participants were on the sidelines ahead of the
fresh supply of securities on Friday. However the sentiment continues to be
cautious due to the uncertainty of the pace of the policy rate hike from the central
bank. The volumes on the trading platform dropped to INR 44bn compared to INR
52bn on Tuesday. The 7.99% 2017 bond remained weak as the fresh supply on
Friday prompted traders to cut holdings. The benchmark 10 Yr bond closed 1 basis
lower at 8.18% while the most liquid 8.13% 2022 bond closed unchanged at
8.20%.
With the deteriorating liquidity situation, despite the active management from the
central bank, swap rates continued to soar higher. The one year swap closed 5 bps
higher at 7.45% while the five year swap closed at its highest level in 27-month at
8.05%.
Non-SLR market
State Bank of Hyderabad placed INR 3bn of June maturity CD at 9.55% while J&K
Bank raised INR 2.50bn of 20th April maturity CD at 9.35%. Corporation Bank and
IDBI Bank raised INR 3.50bn and INR 1.0bn respectively of one year CD at 9.77%
& 9.78%. Bank of Maharashtra placed INR 2.25bn of 20th April CD at 9.24%.
Money markets
T-bill cut off witnessed a rise over the last week owning to the strain on the
liquidity again, after a brief respite during the last fortnight. RBI set a cut off yield
of 7.18% of the 91 Day T-bill compared to 7.14% in the last week. For the 182
Day T-bill cut off shot up 15 bps to 7.44%.
Repo borrowing continued to rise, touching INR 1.14 trn today compared to INR
1.09trn yesterday. Overnight rates edged higher as system liquidity returned to
the same extent of deficit as the one before the central bank conducted the
buyback operations in the last fortnight.
No comments:
Post a Comment