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Weekly Newsletter - 15th December, 2023

Team Harmoney

The Indian 10Y finally managed to break the lower end of the trading range of 7.20-7.40, courtesy to dovish commentary by the US FED chairman. Market participants will closely monitor whether the Indian 10Y can manage to trade below 7.20 level or will again rise and settle in the range of 7.20-7.40. Rising Brent prices will be the key trigger that will drive the bond prices going forward.

Indian Debt

  • The interbank call money rate ended at 6.80%.
  • The Indian Government bond yield softened by 5bps during the week, as the US FED's commentary cheered the market.
  • The yield of the 10-year benchmark 7.18% 2033 bond ended at 7.19%. The 10Y paper moved down by 5bps from 7.24 to 7.19 as the US FED's Chairman hinted of three rate cuts in year 2024, which resulted in rally in Indian 10Y.
Debt Market Indicators Close Last week Close
Repo rate 6.50 6.50
91 Days Tbill 6.980 6.955
364 Days Tbill 7.19 7.16
1 Y CP Rate 7.90 7.95
1 Y CD Rate 7.80 7.85
5 Y Gilt 7.12 7.23
5 Y Corp bond 8.05 8.10
10 Y Gilt 7.19 7.24
10 Y Corp bond 7.20 7.88
  • The Indian rupee appreciated by 6 paise during the week.
  • The US 10Y moved down by 20bps during the week, as market expects 75-90bps rate cut in 2024 after listening to Jerome Powell's speech.
  • Brent Crude is currently trading at $77/barrel despite touching to $72/barrel during the week. The rise in Brent prices can be attributed to dovish signals from the US Federal Reserve, a weaker dollar and robust forecast for global oil demand in 2024.
Indian Indicies Close Last week Close
Sensex 70,807 69,521
Nifty 21,275 20,901

General News

  • Indian CPI number for the month of November released during the week were on the expected line at 5.55%.
  • The US Federal Reserve kept their repo rates unchanged in the range of 5.25% and 5.50%, their highest level in last 22 years.
  • The US Fed Chairman signaled that they expect to make about 75bps cuts to their benchmark interest rate in 2024.
Global Indices Close Last week close
DJIA 37,248 36,117
NASDAQ 14,761 14,339
US 10-Y 3.95 4.16
USD/INR 83.3 83.36
Brent (USD) 77 75.15

Primary Issues

Issuer Name Ratings Tenor Issue Size +
Open Date Exchange
Hinduja Leyland Finance Ltd CARE AA 3 Years 100+0 Cr 15-Dec-23 BSE
Spandana Sphoorty Financial Ltd IND A 2 Years 100+100 Cr 15-Dec-23 BSE

Top Traded Bonds

The top traded bonds in the Market (Standard) lot during the week (11th-15th Dec) are listed below:

ISIN Security Name Volume (Cr) Avg. yield %
INE476A08217 8.40 CANARA BANK PERP - C 1,198.00 8.17
INE556F08KL3 7.83 SIDBI 24NOV28 1,095.00 7.80
INE261F08DD2 5.27 NABARD 29APR24 953.00 7.83
INE916DA7RI1 5.74 KMPL 22OCT24 950.00 8.30

The top traded bonds in the Odd lot during the week (11th-15th Dec) are listed below:

ISIN Security Name Volume (Cr) Avg. yield %
INE121A07RM2 8.60 CHOLA 07DEC28 121.75 8.53
INE140R08106 9.75 CHAITANYA FIN CREDIT 10NOV2025 35.31 10.68
INE515Q08242 12.25 ANNAPURNA FINANCE 07SEP2029 19.58 13.08
INE891K08166 8.28 AXIS FIN 28OCT33 18.80 8.39