•Fixed Income:
The New 10-Year Benchmark GOI 7.18 2033 traded between 7.33% – 7.39% during this week
Old 10-Year Benchmark GOI 7.26 2033 traded between 7.37% – 7.43% during this week, tracking movement in Crude Oil, Currency, and US Treasury Yields.
•Auction Highlights:
RBI conducted the Auction for G-sec, SDL and T-Bill for the aggregated amount of INR 30,000 Crore, INR 18,900 Crore and INR 24,000 Crore respectively.
G-sec:
New GS 2026 (7.33%)
7.18% GS 2037 (97.62/7.4580%)
7.25% GS 2063 (96.38/7.5373%)
SDL Cutoff:
07 Years: TN 7.68%
10 Years: KR 7.69%, RJ 7.71%, TN 7.72%, UP 7.70%
11 Years: KR 7.70%, MP 7.68%
12 Years: TS 7.72%, MN 7.73%
13 Years: AP 7.72%
19 Years: AP 7.66%
20 Years: TN 7.66%
30 Years: JK 7.60%
Reissue of 7.46% Maharashtra SGS 2033 issued on September 13, 2023 at 98.35/7.6997
Reissue of 7.47% Maharashtra SGS 2034 issued on September 13, 2023 at 98.24/7.7101
T-Bill Cutoff:
091 Days: INR 7000 Crore 98.3004/ 6.9349%
182 Days: INR 8000 Crore 96.5634/ 7.1374%
364 Days: INR 9000 Crore 93.3355/ 7.1600%\u0009
•Commodities:
1)Brent Crude Oil: $85.77-$91.15 (Per barrel)
2)WTI Crude Oil: $82.08-$88.29 (Per barrel)
3)Gold: INR 6,145-INR 6,262 24 Carat (1 Gram)
4)Silver: INR 74,600-INR 75,100 (1 KG)
•US Treasury Yield:
1)US 2 Year Treasury: 5.00%-5.14%
2)US 5 Years Treasury: 4.75%-4.94%
3)US 10 Years Treasury: 4.80%-5.02%
•Corporate Bond Highlights:
AAA 5 Years PSU Bond traded between 7.75%-7.78% this week.
AAA 10 Years Private Bond traded between 7.79%-7.83% this week.
•New Issuances:
India Infrastructure Finance Company Limited
Ratings: AAA by ICRA & IND Ratings
Issue Size: 500 + 1500 Cr
Maturity Date: 26/10/2038
Allocated 2000 Crs at 7.69%
National Bank for Agriculture and Rural Development
Ratings: AAA/ Stable by CRISIL & ICRA
Issue Size: 2000 + 3000 Cr
Maturity Date: 30/12/2026
Allocated 2518 Crs at 7.83%
NIIF Infrastructure Finance Limited
Ratings: AAA/ Stable by CARE & ICRA
Issue Size: 100 + 400 Crs
Maturity Date: 28/11/2028
Allocated 500 Crs at 8.085%
ICICI Home Finance Company Limited
Ratings: AAA/ Stable by CRISIL & ICRA
Issue Size: 400 + 0 Crs
Maturity Date: 28/03/2025
Allocated 400 Crs at 7.96%
Sundaram Finance Limited
Ratings: AAA/ Stable by CRISIL
Issue Size: 500 + 0 Cr
Maturity Date: 26/10/2026
Allocated 500 Crs at 8.04%
Axis Finance Limited
Ratings: AAA by CRISIL & IND Ratings
Issue Size: 50 + 150 Crs
Maturity Date: 28/10/2033
Allocated 200 Crs at 8.28%
•News Highlights:
INDIA
1)India’s foreign exchange reserves resumed their losing streak to fall to $583.53 billion as of Oct. 20, compared with $585.90 billion a week earlier, data from the Reserve Bank of India showed on Friday.
2)The Indian government had no outstanding loans with the central bank under ways and means advances in the week ended Oct. 20, according to the Reserve Bank of India’s weekly statistical supplement released on Friday.
3)RBI announces rate of interest on Government of India Floating Rate Bond 2034 applicable for the half year October 30, 2023 to April 29, 2024 to be 8.10 per cent per annum.
4)JP Morgan upgraded its rating on India to ‘overweight’ from ‘neutral’ partly on the grounds that the market historically has mostly risen in the run-up to the national elections. The brokerage said India’s strong economic outlook and prospects of a deeper bond market are also factors to be positive on the country’s equities in the longer term.
5)India is projected to overtake Japan and become the world’s third-largest economy by 2030, with a GDP of $7.3 trillion, according to S&P Global Market Intelligence. The country’s rapid economic expansion is driven by strong growth in domestic demand, increased foreign direct investment, and a growing middle class, the report said.
6)To address concerns and challenges, the RBI requested that banks have at least two WTDs on their boards, including the MD and CEO. The number of WTDs should be determined by the bank’s board of directors, who should consider criteria such as the size of operations, business complexity, and other relevant factors.
7)The finance ministry’s monthly economic review for September said the global economy is facing fresh challenges in the form of “adverse geopolitical turns and volatile crude oil prices”, and if these risks worsen and sustain, they can affect economic activity in India as well.
8)The Reserve Bank of India had announced that the Regulatory Sandbox (RS) will be theme neutral. It now announces opening of application window for the Fifth Cohort to eligible entities. Innovative products/ services/ technologies cutting across various functions in RBI’s regulatory domain would be eligible to apply. The application for the Fifth Cohort may be submitted from October 30, 2023 to November 30, 2023.
9)SEBI releases framework for Corporate Debt Market Development Fund (CDMDF) to act as a backstop facility for purchase of investment grade corporate debt securities. A workflow has been developed on the existing NSE RFQ Platform for CDMDF transactions, which will be available from October 27, 2023.
WORLD
1)The S&P Global Manufacturing PMI from October came in at 50, beating the expected 49.5, accelerating from its prior reading of 49.8. The Services PMI also came in higher than expected at 50.9 vs the expected 49.8 increasing from its prior reading of 50.1.
2)The US economy expanded at an annualized rate of 4.9% during the third quarter, surpassing market consensus of 4.2%.
3)US jobless claims rose by 10,000 to 210,000 on the week ending October 21, compared to previous week
4)US personal consumption expenditures (PCE) price index rose by an annualized 2.9% in Q3 2023, following a 2.5% rise in 02 while core PCE Index came at 2.4%, lower from 3.7%
5)The Bank of Canada (BoC) held its main reference rate at 5.0% like Wall Street broadly predicted, but dovish comments from BoC Governor Tiff Macklem are failing to spark much confidence in the Loonie.
6)Chile’s central bank cut its benchmark interest rate on Thursday by 50 basis points to settle at 9.00% in a unanimous decision, as the South American nation’s monetary authority sees inflation pressures easing.
7)European Central Bank (ECB) announced its decision on monetary policy, and as widely anticipated, policymakers held fire after ten consecutive hikes. President Christine Lagarde and co made a point on rates, declaring the decision was unanimous, adding that discussing rate cuts is out of the table for now, and finally noting that they cannot confirm rates would not be any higher.
8)Eurozone HCOB flash manufacturing PM fell to 43 in October from 43.4 in September, services PMI fell to 47.8 from 48.7. The composite PMI dropped to 46.5, down from 47.2.
9)UK S&P Global CIPS flash manufacturing PMI rose to 45.2 in October from 44.3 in September, services PMI edged down to 49.2 from 49.3. The composite PMI came in at 48.6 from 48.5
10)According to the latest data published by the Australian Bureau of Statistics (ABS) on Wednesday, the nation’s Consumer Price Index (CPI) arrives at 1.2% in the third quarter of 2023, compared with the 0.8% increase seen in the second quarter. The market consensus was for a growth of 1.1% in the reported period.
11)Japan’s factory activity contracted for the fifth consecutive month, with the manufacturing purchasing managers’ index (PMI) holding at 48.5, indicating a sustained period below the growth threshold of 50.0 since June. Japan’s services PMI descended to its lowest growth rate this year at 51.1, down from 53.8 the previous month.
12)The index of coincident economic indicators in Japan, which covers a range of data, such as factory output, employment, and retail sales, edged up to 14.3 in August 2023 from a final 114.2 in July which was the lowest reading in four months.
13)The Bank of Russia hiked interest rates by a higher than expected 200 basis points to 15% on Friday, raising borrowing costs for the fourth meeting running in response to a weak rouble, stubborn inflation and increasing budget spending.