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Weekly Newsletter - 9th Feb, 2024

Team Harmoney

RBI governor’s hawkish commentary disappointed the bond market and resulted in yields rising by 5 bps to 7.09% levels. The RBI's emphasis remains on taming inflation. Markets will closely monitor the inflation for January which will be published next week, currently expected to be around 5.2%. Market participants believe Indian 10Y should trade in the range between 7.05 to 7.15. Unless the inflation number is higher than market expectations, it is unlikely that the Indian 10Y will move above 7.15.

Indian Debt

  • The interbank call money rate ended at 6.85%
  • Indian Government 10 Y bond yield moved up by 5 bps during the week as RBI governor did not give any clear indication about the rate cut cycle.
  • 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 7.01 7.02
364 Days Tbill 7.11 7.15
1 Y CP Rate 8.00 8.00
1 Y CD Rate 7.85 7.90
5 Y Gilt 7.02 6.98
5 Y Corp bond 7.92 7.95
10 Y Gilt 7.08 7.03
10 Y Corp bond 7.75 7.75
  • Indian rupee depreciated by 10 paise against US dollar during the week as the India equity market saw outflows of 5944 crs during the week on selling from FIIs
  • US 10Y moved up by 25 bps after Fed chairman's speech as the market anticipated rate cuts in the US will take time to come.
  • Brent started trading above the psychological level of $80 per barrel as Israel's Prime minister rejected a ceasefire proposal from Hamas.
Indian Indices Close Last week Close
Sensex 71,410 72,157
Nifty 21,727 21,866

General News

  • RBI in its bimonthly MPC meeting kept the rate unchanged at 6.50%. The RBI Governor mentioned in his speech that bringing inflation down is the key focus right now.
  • The inflation rate for Jan 2024 will be published on 12th Feb 2024.
Global Markets Close Last week close
DJIA 38,726 38,519
NASDAQ 15,793 15,361
US 10-Y 4.14 3.89
USD/INR 82.96 82.86
Brent 81.64 79.00

Primary Issues

Issuer Name Ratings Tenor Issue Size +
Green Shoe (in crs)
Open Date Exchange
Keertana Finserv ICRA BBB 2 Years 110+0 09-Feb-24 BSE
Suvita Real Estate ACUITE C 14 Months 105+0 09-Feb-24 BSE

Top Traded Bonds

The following are the most actively traded bonds on the Standard Market from 5th Feb to 9th Feb:

ISIN Security Name Volume (Cr) Avg. Yield (%)
INE261F08EG3 7.68 NABARD 30APR29 3,322 7.67
INE261F08DD2 5.27 NABARD 29APR24 2,442 7.91
INE040A08708 6.00 HDFC BANK 29MAY26 1,685 8.10

The following are the top-traded odd lot bonds from 5th Feb to 9th Feb:

ISIN Security Name Volume (Cr) Avg. yield%
INE06E507165 10.57 HELLA INFRA MARKET 23NOV25 27.89 14.82
INE572J07653 10.11 SPANDANA SPHOORTY 18DEC25 20.71 11.67
INE248U07EY4 9.03 360 ONE PRIME 28JAN26 20.07 9.40
INE062A08413 8.34 SBI PERP 19JAN34 C 18 8.14