Weekly Fixed Income Market Analysis
Risk appetite in bond markets that was extremely low prior to 29th February budget 2016-17, has gone up considerably post budget. Bond yields have dropped by 30bps to 40bps in the Read More
19 Mar 2016
The release of IIP data along with ECB easing policy aggressively further places pressure on RBI to cut the Repo rate sooner than later. Rate cut expectations shot up after the govRead More
12 Mar 2016
RBI has announced an OMO (Open Market Operations) bond purchase auction for Rs 150 billion on the 10th of March 2016. The Central Bank will buy bonds maturing from 2018 to 2030 in Read More
06 Mar 2016
Government bond yields can fall post budget if fiscal deficit is kept at 3.5% of GDP and prospects of rate cut by the RBI increase given that the government is clamouring for more Read More
27 Feb 2016
Government bond markets saw yields rising last week on worries of higher government borrowing for fiscal 2016-17. The 7.72% 2025 bond saw yields rising by 8bps to close at 7.91% leRead More
20 Feb 2016
The ten year benchmark government security, the 7.59% 2026 gsec, is both attractive and unattractive in terms of yields, depending on how one looks at it. On one hand, the sharp drRead More
13 Feb 2016
The short end of the credit curve is trading at healthy spreads over the Repo Rate and looks extremely attractive, as yields are likely to fall sharply in April. CD and CP yields hRead More
06 Feb 2016
The Bank of Japan (BOJ) unexpectedly and against all expectations cut the rate it pays on bank reserves from all forthcoming asset purchases to -0.1%. The move by BOJ to move into Read More
30 Jan 2016
The government last week sent out signals that it may stick to its fiscal deficit target of 3.5% of GDP for fiscal year 2016-17. The news coupled with RBI accepting all bids in itsRead More
23 Jan 2016
Government bond yields at the long end of the yield curve rose sharply last week as markets worried about government finances and global market volatility. The ten over thirty segmRead More
17 Jan 2016
The government of India issued a new ten year benchmark bond in its bond auction last week. The cut off yield on the ten year benchmark bond came in at 7.59%, which was 15bps lowerRead More
10 Jan 2016
Demand-Supply imbalances with supply outstripping demand in 2016 could lead to the ten year gsec yield staying well above repo rate levels. The ten year gsec-repo rate spread widenRead More
02 Jan 2016
Indian ten year benchmark bond yield has fallen by 16bps calendar year 2015 to date as of 24th December 2015. The bond is one of the best performers amongst global bonds with bond Read More
26 Dec 2015
Government surplus rose from levels of Rs 595 billion to Rs 1430 billion week on week as advance tax payments went into the government account. Government finances were seen as beiRead More
20 Dec 2015
The government bond auction for Rs 150 billion last week saw the RBI devolving 18% of the auction on to the underwriters, who are the Primary Dealers. Bids for the 7.72% 2025 benchRead More
12 Dec 2015
The INR fell to over two year lows on the back of global market disappointment on ECB and expectations of Fed rate hike in mid December. The INR touched levels of Rs 67 to the USD,Read More
05 Dec 2015
Bond markets are staring at a phase of “No positives = Only Negatives”. Bond yields have risen sharply from lows seen post RBI 50 bps rate cut in September on the back of this mantRead More
28 Nov 2015
Government bond yields rose last week on the back of the release of the report by the 7th Pay Commission. The commission has recommended hikes in pay, allowance and pension (PAP) oRead More
22 Nov 2015
The Friday terrorist attack on the people of Paris will increase risk aversion globally as investors worry about more such attacks. Rising global risk aversion will lead to EM bondRead More
15 Nov 2015
Government bonds have outperformed Sensex, Nifty, INR and Gold this Diwali. Benchmark ten year government bond yields have fallen by 70bps from Diwali 2014 to Diwali 2015 even as SRead More
08 Nov 2015
