Date : June 29, 2011

 

Overnight rates soften, RBI infuses Rs 95,730 crores

 

 

 

 

 

T-Bill yields harden, auction result announced

 

 

 

 

 

 

 

 

 

 

 

G-Sec yields harden

 

 

 

 

 

 

 

 

 

 



   

 


Inter bank Money Markets
  • The Call, Repo & CBLO rates were at 7.70%, 7.65% & 8.00% respectively. RBI infused Rs. 96,330 crores in the repo auction and absorbed Rs.600 crores through reverse repo auction. The 1 year and 5 year OIS ended at 8.08% (8.04%) & 7.83% (7.70%) respectively. The NSE Mibor rate was at 7.64%, up by 4 bps.
 
29- June
28- June
 RBI Reverse  Repo
600 crs
795 crs
 RBI Repo
96,330 crs
49,025 crs
 Overnight Call
7.20% -7.70%
7.20% -7.95%
 Market Repo
5.00% -7.65%
7.20% -8.25%
 CBLO
5.25% - 8.00%
7.10% - 8.30%
 INR OIS-1yr
8.03% -8.08%
8.00% -8.04%
 INR OIS-5yrs
7.71% -7.83%
7.68% -7.70%
MIBOR
7.64%
7.60%
Short Term Money Market Instruments
  • 3 months and 1 year T-Bill yields hardened to 8.15% and 8.20%, up by 2 bps and 6 bps respectively. At the Tbills auction, RBI announced cut off yield for 91 DTB at 8.19%, unchanged from its previous cut-off yield, and 364 DTB at 8.29%, lower from its previous cut-off yield of 8.34% for a notified amount of Rs. 9,000 crores.

 Treasury Bill yield
 Tenor
29- June
28- June
 1 Month
7.98%
7.98%
 3 Month
8.15%
8.13%
 6 Month
8.15%
8.15%
 12 Month
8.20%
8.14%
 

.
  • PSU Banks and State Bank Associates issued 3 months and 6 months CD's at 8.49% and 9.15% respectively. State Bank Associates and Private Bank also issured 1 year CDs in the range of 9.50% - 9.75%.
Certificate of Deposits
 Tenor
29- June
28- June
 1 Month
9.10%
9.20%
 3 Month
8.59%
8.59%
 6 Month
9.15%
9.42%
 12 Month
9.70%
9.85%
Government Securities & Corporate Bonds

  • The 10 year bond (7.80% GS 2021) yield ended at 8.32%.
  • The 10 year bond yield ended at 8.32%, up by 4 bps, on expectations of rising inflation after hike in petrol and diesel prices. The bond traded in a range of 8.30% - 8.32%. Nervousness is likely to prevail, with the 10 year bond likely to trade in a range of 8.30% - 8.35%, with an upward bias. The yield on the 11 year security, 8.13% GS 2022 ended at 8.40%.

 

Government Securities
 Tenor
29- June
28- June
 1 Yr
8.02%
8.02%
 2 Yr
8.15%
8.15%
 5 Yr
8.38%
8.37%
 10 Yr
8.32%
8.28%
 15 Yr
8.58%
8.54%
 30 Yr
8.54%
8.54%

 

  • Cholamandalam Investment & Finance Co Ltd will raise Rs 50 crores through seven-year bonds. It will pay an annual coupon of 12.25% on the bonds, rated AA-(ind) by Fitch and (ICRA) AA- by ICRA. The bond issue has a greenshoe option of Rs. 100 crores.
    .
Corporate bonds (AAA Rated)
 Tenor
29- June
28- June
 1 Yr
9.49%
9.49%
 2 Yr

9..53%

9..53%

 3 Yr
9.55%
9.55%
 5 Yr
9.60%
9.60%
 10 Yr
9.62%
9.62%
NSE (WDM)Volumes

 

  • Volumes in Corporate Bonds were Rs 689 Crores. The 5 year and 10 year spreads between sovereign and corporate bonds were 122 bps and 130 bps respectively.
 
 
29- June
28 June
Corporate Bonds

689 Crs

432 Crs

1 - 5 years
570 Crs
427 Crs
Above 5years
119 Crs
5 Crs
G-Secs
963 Crs
570 Crs
T-Bills
615 Crs
478 Crs
For enquiries contact:
Puneet Bhatnagar
tel: 022 28577305/3751
email: corporate@acm.co.in
Sandeep Kudtarkar
tel: 022 28577309/28583751
email: corporate@acm.co.in
Manasi Shah
tel: 022 28577309/3754
email: corporate@acm.co.in
Vrushti Shah
tel: 022 28577309/3755
email: corporate@acm.co.in
 
 

Disclaimer:
This document has been prepared by the Research Desk of Asit C Mehta Investment Interrmediates Ltd. and is meant for use of the recipient only and is not for circulation. This document is not to be reported or copied or made available to others. It should not be considered as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as such. We may from time to time have positions in and buy and sell securities referred to herein.