Daily Newsletter - 20th June 2024
Foreign investors have stepped up purchases of government bonds in the run-up to the inclusion of such bonds into the JP Morgan emerging market bond index. Data shows that foreigners now hold ₹1.78 trillion of the securities eligible for investments under the Fully Accessible Route, a record high. A fall in US yields seems to have spurred the recent play in the Indian bond market. It is expected that some ₹2 billion of new money will come in this month from foreigners once the JP Morgan index inclusion commences.
Top 3 Leads Today
- India set for $2 bn bond inflows around JP Morgan index inclusion day
- State Bank of India to raise up to ₹200 billion via long-term bonds in FY25
- Will invest $100 bn in energy transition over next decade: Gautam Adani
Indian Markets
- Money Markets Minute: Call money demand was strong, and the rate settled at around the repo rate of 6.5%. The liquidity deficit had widened, and concerns were that it might tighten more due to GST payments.
- Government Bond Brief: Yields rose from the day’s lows due to profit-taking. Yields fell early due to strong demand following the overnight fall in US treasury yields. The 10-year closed at 6.97%. Foreign banks were the main buyers on Wednesday.
- Corporate Bond Beat: Yields were steady amidst a lack of cues for fresh big position-taking.
- Forex Flash: The rupee gave up all its intraday gains to close lower against the dollar due to dollar purchases by foreign banks and oil marketing companies. The rupee closed at 83.45/$1
- Stocks Spotlight: Stocks rose to a lifetime high on Wednesday before giving up all the gains to close lower due to profit sales in sectors such as infrastructure, energy, power, automobile, and capital goods. These stocks had risen after the election results were out. 39 of 50 Nifty stocks fell Wednesday.
International Markets
- US Stocks, Treasuries, Currency: Markets were closed for Juneteenth National Independence Day.
Trading Trends
Traded volume(in Cr) in corporate bonds by sector and maturity:
| Macro Sectors | 0-1y | 1-3y | 3-5y | 5-10y | >10y |
|---|---|---|---|---|---|
| Financial Services | 1,078 | 3,771 | 1,565 | 4,786 | 314 |
| Telecommunication | 20 | 300 | - | 164 | - |
| Utilities | 93 | - | 9 | 1 | - |
| Consumer Discretionary | 50 | 50 | - | - | - |
| Diversified | - | 50 | - | - | - |
Secondary trade details for recently issued primary corporate bonds:
Security Name |
Issue Date |
Traded Volume(Cr) |
Avg Yield(%) |
LTY (%) |
|---|---|---|---|---|
| 7.9265 LICHSGFIN 14JUL27 | 2024-06-14 | 260.00 | 7.93 | 7.93 |
| 7.44 IRFC 13JUN34 | 2024-06-13 | 1,075.00 | 7.47 | 7.44 |
| 8.55 HDB PERP - C | 2024-06-13 | 180.00 | 8.53 | 8.55 |
| 9.16 360ONEPRIME 12JUN27 | 2024-06-12 | 75.00 | 9.67 | 9.90 |
| 8.18 G R INFRAPROJECTS 09JUN34 | 2024-06-10 | 50.00 | 8.17 | 8.18 |
| 8.3333 HDB 06AUG27 | 2024-06-07 | 86.40 | 8.32 | 8.23 |
| 8.73 ERISLIFE 07JUN27 | 2024-06-07 | 65.00 | 8.65 | 8.64 |
| 8.73 ERISLIFE 07DEC26 | 2024-06-07 | 65.00 | 8.65 | 8.65 |
| 8.55 MASFINANCIAL 06DEC25 | 2024-06-06 | 119.31 | 9.41 | 9.10 |
| 7.50 IREDALTD 05JUN34 | 2024-06-05 | 425.39 | 7.50 | 7.50 |
| 8.67 AXISFIN PERP - C | 2024-06-04 | 182.00 | 8.47 | 8.07 |
Source: Harmoney data analytics
Events This Week
June 20, Thursday:
- Bank of England monetary policy decision
June 21, Friday:
- RBI to auction ₹330 billion worth of government bonds
For any inquiries or assistance related to market data, please reach out to us at support@harmoney.in