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Yields in tight range with upward bias; Liquidity stress re-emerges
Gilts saw subdued activity today as aggressive positions were avoided, a trend which
should continue till the events of next week. Yields while broadly anchored to a tight
range of 2bps had an upward bias throughout as the dominant mood is that of
cautiousness. The only noteworthy cue today was the LAF window borrowing regaining
momentum and now back above the INR 1tn mark at INR 1.26tn.
The 10-Y G-Sec yields stayed higher than yesterday’s close for the entire session, hitting
an intra-day high of 8.25% before closing at 8.24% vs previous close of 8.23%.
The OIS segment was comparatively more active today and showed marked movement,
drawing on yesterday’s negatives cues of state elections and auctions. The strong
overnight sell-off in global equities was unable to create receiving interest in India OIS
swaps and they headed higher by 3-5 bps with the tail end showing greater movement.
The 1Y OIS traded at 8.15-8.19% vs 8.11-8.14% while the 5-Y swap was at 7.41-7.45% vs
7.34-7.41%.
Non-SLR Market
UCO Bank placed 3M CD worth INR 6bn @11.17%. OBC placed 1Y CD worth INR 3.85bn @
10.74%. BOI placed 3M CD worth INR 16bn @ 11.155%.
Money Market
2-day call market borrowing volumes were above INR 200bn as the liquidity stress reemerged,
however rates stayed at the previous day’s WAR of 8.88%. Deals were also struck
at the higher end at 9% towards the end.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Yields in tight range with upward bias; Liquidity stress re-emerges
Gilts saw subdued activity today as aggressive positions were avoided, a trend which
should continue till the events of next week. Yields while broadly anchored to a tight
range of 2bps had an upward bias throughout as the dominant mood is that of
cautiousness. The only noteworthy cue today was the LAF window borrowing regaining
momentum and now back above the INR 1tn mark at INR 1.26tn.
The 10-Y G-Sec yields stayed higher than yesterday’s close for the entire session, hitting
an intra-day high of 8.25% before closing at 8.24% vs previous close of 8.23%.
The OIS segment was comparatively more active today and showed marked movement,
drawing on yesterday’s negatives cues of state elections and auctions. The strong
overnight sell-off in global equities was unable to create receiving interest in India OIS
swaps and they headed higher by 3-5 bps with the tail end showing greater movement.
The 1Y OIS traded at 8.15-8.19% vs 8.11-8.14% while the 5-Y swap was at 7.41-7.45% vs
7.34-7.41%.
Non-SLR Market
UCO Bank placed 3M CD worth INR 6bn @11.17%. OBC placed 1Y CD worth INR 3.85bn @
10.74%. BOI placed 3M CD worth INR 16bn @ 11.155%.
Money Market
2-day call market borrowing volumes were above INR 200bn as the liquidity stress reemerged,
however rates stayed at the previous day’s WAR of 8.88%. Deals were also struck
at the higher end at 9% towards the end.
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