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Weekly Newsletter - 8th December, 2023

Team Harmoney

The RBI's Monetary Policy Committee maintained status quo with no market moving news in the Governor’s speech, the Indian 10Y remained flat at 7.24 and maintained a trading range of 7.20 to 7.40. Softening in the US 10Y and Brent prices will support the market but market participants do not see the yields going down further from this point. Hence, the market participants expect the trading range for the Indian 10Y to be from 7.20 to 7.40

Indian Debt

  • The interbank call money rate ended at 6.80%.
  • The Indian Government bond yield softened by 5bps during the week, as the monetary policy announcement was on the expected line.
  • The yield of the 10-year benchmark 7.18% 2033 bond ended at 7.24%. The 10Y paper moved down by 5bps from 7.29 to 7.24 owing to softening in Brent prices and US 10Y bond.
Debt Market Indicators Close Last week Close
Repo rate 6.50 6.50
91 Days Tbill 6.955 6.960
364 Days Tbill 7.16 7.15
1 Y CP Rate 7.95 7.85
1 Y CD Rate 7.85 7.75
5 Y Gilt 7.23 7.27
5 Y Corp bond 7.85 7.85
10 Y Gilt 7.24 7.29
10 Y Corp bond 7.88 7.87
  • The Indian rupee depreciated by 6 paise during the week.
  • The US 10Y moved down by 17bps during the week, as the economic data in the US suggested slowing down of the US economy.
  • The Brent Crude remained in the range of $75 to $80/barrel during the week. Brent is set to lose about 5% this week, amid the signs of increasing global supplies and weakening demand.
Indian Indicies Close Last week Close
Sensex 69,521 66,988
Nifty 20,901 20,133

General News

  • Monetary policy which was announced on Friday, was on the expected line with key rates remaining unchanged. Repo rate was at 6.5% and SDF rate was at 6.25%.
  • MPC voted unanimously to keep the Repo rates unchanged. The MPC members voted 5-1 in favour of retaining the the stance at "withdrawal of accommodation".
Global Indices Close Last week close
DJIA 36,117 35,950
NASDAQ 14,339 14,226
US 10-Y 4.16 4.33
USD/INR 83.36 83.3
Brent (USD) 75.15 80.50

Primary Issues

Issuer Name Ratings Tenor Issue Size +
Open Date Exchange
NAVI Finserv Ltd IND A (Stable) 3 Years 50+50 Cr 08-Dec-23 BSE
REC Ltd ICRA AAA 23 Months 500+1,500 Cr 08-Dec-23 NSE

Top Traded Bonds

The top traded bonds in the Market (Standard) lot during the week (4th-8th Dec) are listed below:

ISIN Security Name Volume (Cr) Avg. yield %
INE040A08922 7.80 HDFC Bank 02JUN25 1,525.00 8.12
INE306N07NS8 8.0980 Tata Capital 22NOV27 808.40 8.17
INE403D08181 8.90 Bharti Telecom 04DEC25 600.00 8.84
INE261F08CU8 5.44 NABARD 05FEB24 600.00 7.48

The top traded bonds in the Odd lot during the week (4th-8th Dec) are listed below:

ISIN Security Name Volume (Cr) Avg. yield %
INE140R08106 9.75 CHAITANYA INDIA FIN CREDIT 10NOV25 21.17 10.81
INE0P3M07017 14.25 HELLA CHEMICAL MARKET 18MAR26 20.50 15.86
INE06E507165 10.57 HELLA INFRA MARKET 23NOV25 16.27 15.33
INE0BNQ07063 10.00 AVANTI FINANCE 17MAY25 13.96 9.95