US Inflation numbers were the topic of discussion during the week as the US yield spiked up. The unexpectedly higher inflation figures disappointed the market and postponed expectations for a rate cut. The Indian 10-year yield also succumbed to this domino effect and reacted sharply, pushing the yield to the 7.14% mark. However, there was some buying near the upper end of the trading range of 7.00% to 7.15% resulting in 10Y coming back to 7.08%, and the week ended flattish for the Indian 10Y.
Indian Debt
- The interbank call money rate ended at 6.75%
- Indian Government 10 Y bond yield was flat during the week as the CPI number for January was on the expected line
- The yield of the 10-year benchmark 7.18% 2033 bond ended at 7.08%
| Debt Market Indicators |
Close |
Last week Close |
| Repo rate |
6.5 |
6.5 |
| 91 Days Tbill |
7.05 |
7.01 |
| 364 Days Tbill |
7.15 |
7.11 |
| 1 Y CP Rate |
8.00 |
8.00 |
| 1 Y CD Rate |
7.90 |
7.85 |
| 5 Y Gilt |
7.06 |
7.02 |
| 5 Y Corp bond |
7.90 |
7.92 |
| 10 Y Gilt |
7.08 |
7.08 |
| 10 Y Corp bond |
7.74 |
7.75 |
Market Trends
- Indian rupee depreciated by 8 paise against the US dollar during the week as the Indian equity market saw outflows of 6350 crs during the week on selling from FIIs
- US 10Y moved up by 11bps as inflation numbers for January were higher than expectation
- Brent traded in the narrow range of 80$ to 83$ per barrel underpinned by geopolitical uncertainties in the Middle East and OPEC+ efforts to curb oil supply
| Indian Indices |
Close |
Last week Close |
| Sensex |
72,328 |
71,410 |
| Nifty |
22,005 |
21,727 |
General News
- The inflation number in the US for the month of January 2024 was higher than expected at 3.10%
- Indian CPI number for the month of January 2024 came at 5.10%
| Global Markets |
Close |
Last week close |
| DJIA |
38,733 |
38,726 |
| NASDAQ |
15,906 |
15,793 |
| US 10-Y |
4.25 |
4.14 |
| USD/INR |
83.02 |
82.96 |
| Brent |
82.5 |
81.64 |
Primary Issues
| Issuer Name |
Ratings |
Tenor |
Issue Size +
Green Shoe (in crs) |
Open Date |
Exchange |
| Samunnati Financial Intermediation |
Crisil BBB |
4 Years |
75+0 |
16-Feb-24 |
BSE |
| India Grid trust |
Crisil AAA |
5 Years |
500+0 |
16-Feb-24 |
BSE |
Top Traded Bonds
The following are the most actively traded bonds on the Standard Market from 9th Feb to 16th Feb:
| ISIN |
Security Name |
Volume (Cr) |
Avg. Yield (%) |
| INE261F08EF5 |
7.80 NABARD 15MAR27 |
1,255 |
7.75 |
| INE296A07SU3 |
0.00 BAJAJ FINANCE 08FEB34 |
730.3 |
7.86 |
| INE514E08GB4 |
7.45 EXIM 12APR28 |
596 |
7.45 |
| INE733E08247 |
7.35 NTPC 17APR26 |
500 |
7.46 |
The following are the top-traded odd lot bonds from 9th Feb to 16th Feb:
| ISIN |
Security Name |
Volume (Cr) |
Avg. yield% |
| INE891K08174 |
8.38 AXIS FIN 11JAN34 |
16.4 |
8.32 |
| INE157D07ED7 |
9.30 CLIX CAPITAL SERVICES3 1OCT24 |
16.02 |
11.63 |
| INE982X08109 |
13.85 SATYA MICROCAPITAL 12JUL29 |
12.84 |
14.78 |
| INE557F07108 |
8.76 NHB 13JAN34 |
12.75 |
5.09 |