•Fixed Income
The New 10-Year Benchmark GOI 7.10 2034 traded between 6.97% – 7.04% during this week.
The Old 10-Year Benchmark GOI 7.18 2033 traded between 7.02% – 7.08% during this week, tracking movement in US Treasury Yields, Inflation data from around the globe and U.S. FOMC Meeting
•Auction Highlights
RBI conducted the Auction for G-sec, SDL, and T-Bill for the aggregated amount of INR 34,000 Crore, INR 7,750 (5,750) Crore, and INR 12,000 Crore, respectively.
G-sec Cutoff:
New GS 2031: 7.02%\u0009
7.23% GS 2039: 101.77/7.0343%\u0009
7.34% GS 2064: 102.92/7.1175%
SDL Cutoff:
06 Years: PU 7.40%, UK 7.39%
08 Years: TN 7.39%
10 Years: HR 7.38%, PN 7.41%
14 Years: PU 7.38%
25 Years: JK 7.35%
Andhra Pradesh has not accepted any amount in the 15-year, 19-year and 21-year security.
T-Bill Cutoff:
091 Days: INR 4000 Crore 98.3240/6.8370%
182 Days: INR 4000 Crore 96.6308/6.9925%
364 Days: INR 4000 Crore 93.4650/7.0111%\u0009
•Commodities:
1)Brent Crude Oil: $81.19-$83.39 (Per barrel)
2)Gold: INR 7,167-INR 7,255 24 Carat (1 Gram)
3)Silver: INR 90,500-INR 91,300 (1 KG)
•US Treasury Yield:
1)US 2 Years Treasury: 4.65%-4.89%
2)US 5 Years Treasury: 4.19%-4.49%
3)US 10 Years Treasury: 4.18%-4.47%
•Corporate Bond Highlights
AAA 5 Years Bond traded between 7.66%-7.72% this week.
AAA 10 Years Bond traded between 7.52%-7.60% this week.
•New Issuances:
ADANI AIRPORT HOLDINGS LIMITED\u0009
Ratings: A+ by IND Ratings & CRISIL; Issue Size: 150 + 0 Crs; Maturity Date: 12/06/2028.
Allocated 150 Crs at 9.95%
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Ratings: AAA/Stable by INDIA Ratings & ICRA; Issue Size: 2000 + 3000 Crs.
Maturity Date: 06/12/2029; Allocated 5000 Crs at 7.64%
BAJAJ FINANCE LIMITED
Ratings: AAA/Stable by CRISIL; Issue Size: 500 + 2500 Crs; Maturity Date: 10/05/2027.
Allocated 550 Crs at 8.15%
Ratings: AAA/Stable by CRISIL; Issue Size: 300 + 1500 Crs; Maturity Date: 15/05/2029.
Allocated 1192 Crs at 8.05%
SEIL ENERGY INDIA LIMITED
Ratings: AA+/Stable by CARE; Issue Size: 250 + 0 Crs; Maturity Date: 18/06/2029.
Allocated 250 Crs at 8.45%
INFOPARK PROPERTIES LIMITED
Ratings: AA-/Stable by CARE; Issue Size: 875 + 0 Crs; Maturity Date: 19/06/2039.
Allocated 875 Crs at 8.60%
INDIAN RAILWAY FINANCE CORPORATION LIMITED
Ratings: AAA/Stable by ICRA & CRISIL; Issue Size: 500 + 2500 Crs; Maturity Date: 13/06/2034.
Allocated 3000 Crs at 7.44%
RURAL ELECTRIFICATION CORPORATION LIMITED (Semi-annual coupon)
Ratings: AAA/Stable by INDIA & CRISIL; Issue Size: 700 + 3300 Crs; Maturity Date: 31/07/2034.
Allocated 4000 Crs at 7.35%
LIC HOUSING FINANCE LIMITED
Ratings: AAA/Stable by CARE & CRISIL; Issue Size: 500 + 2500 Crs; Maturity Date: 14/07/2027.
Allocated 2570 Crs at 7.935%
TATA CAPITAL HOUSING FINANCE LTD
Ratings: AAA/Stable by CARE & CRISIL; Issue Size: 100 + 500 Crs; Maturity Date: 05/08/2027.
Allocated 600 Crs at 100
Ratings: AAA/Stable by CARE & CRISIL; Issue Size: 200 + 350 Crs; Maturity Date: 18/06/2029.
Allocated 550 Crs at 99.1875.
\u0009
•News Highlights
INDIA
1)India’s foreign exchange reserves surged to a record high of $655.8 billion on June 7, 2024, marking an increase of $4.3 billion over the week. The increase in reserves was largely because of the rise in foreign currency assets which rose by $3.8 billion to $576.3 billion.
2)India’s headline retail inflation eased to the lowest in a year at 4.75 percent in May 2024, according to the data released by the Ministry of statistics and programme implementation. In the previous month of April 2024, the Consumer Price Index (CPI) inflation was at 4.83 percent. May CPI core inflation came at 3.1% vs 3.2% in April.
3)India’s Index of Industrial Production grew by 5% in April 2024, an official statement said. The data released by the National Statistical Office (NSO) showed that the manufacturing sector’s output grew 3.9 per cent in April 2024 against 5.5 per cent in the year-ago month.
4)Food inflation during May decreased marginally to 8.69% from 8.70% in April. The drop in inflation was witnessed in spices, meat and fish, sugar, milk and products, and even vegetables, though slightly. On a sequential basis, the overall index rose 0.5% a month.
5)Wholesale inflation rose to a 15-month high of 2.61% in May from 1.26% in April as food inflation rallied further and global metal prices fed into manufactured product inflation, data released Friday showed.
6)India’s merchandise exports grew 9.1% on year in May to $ 38.13 billion, but a sharp 28% rise in imports of petroleum crude and products pushed imports growth to 7.7%, precipitating a trade deficit of $23.78 billion, the highest since October last year, official data released on Friday (14/06/2024) showed.
7)The market capitalization of BSE-listed companies soared to a historic high of Rs 429.32 lakh crore on 12th June 2024, driven by the BSE benchmark Sensex’s upward movement amid a broadly positive trend in global equities. The 30-share BSE Sensex closed by 149.98 points, or 0.20 percent, at 76,606.57.
8)Non-life insurers posted 15.47 per cent year-on-year (Y-o-Y) growth in gross direct premium underwritten to Rs 20,822.29 crore in May 2024, latest data released by the General Insurance Council showed.
9)A review of the finances of 24 states by FE, showed that their capex in FY24 rose to Rs 7.16 trillion compared with Rs 5.68 trillion in the previous year, a rise of 26%. States’ capital expenditure likely rose by over a quarter in 2023-24 compared with an 18% rise in 2022-23.
10)The Ministry of Finance on Monday (10/06/2024) announced the release of an additional installment of tax devolution to states for June 2024. The objective of the move is to support state finances and spur economic development, it said. The total amount released to states for June, with the recent addition, stood at Rs 1,39,750 crore.
11)India is projected to remain the fastest growing among the world’s largest economies in the coming years, according to the latest report by the World Bank. Moderating growth is expected due to the slowdown in investment, but public and private investment growth should remain strong, the World Bank said.
12)The Confederation of Indian Industry expects India’s GDP to grow at 8% in FY25 on the back of boost in agriculture and services sectors and increase in public spending, among others.
13)The Finance Ministry announced that the interest rate for the General Provident Fund and other similar funds will be effective at the rate of 7.15% from April 1,2024 to June 30, 2024.
14)For FY26 and FY27, the World Bank projected India’s economy to grow at 6.7 per cent and 6.8 per cent, respectively. In FY24, the National Statistical Office has estimated gross domestic product (GDP) to have grown at 8.2 per cent.
WORLD
1)The World Bank upgraded its forecast for global economic growth, citing the strength of American consumer spending. However, they cautioned that despite the improvement, growth remains sluggish compared to past trends.
2)The Federal Reserve maintained a wait-and-see approach in June 2024, holding the federal funds rate steady at 5.25% to 5.50% for the seventh meeting in a row. This decision reflects their cautious stance on inflation, as they wait for clearer signs that inflation is on a steady path towards their 2% target before considering rate cuts. According to the dot plot, policymakers anticipate a single rate cut this year followed by a more accommodative stance in 2025 with four reductions expected.
3)US inflation showed signs of cooling in May, dipping to 3.3% year-over-year. This marks the lowest inflation rate in three months, down from 3.4% in April. Core inflation, which excludes volatile food and energy prices, also retreated to a three-year low of 3.4%, easing from 3.6% the previous month.
4)The UK economy continued its momentum in April, expanding at a rate of b compared to the same month last year. This follows a slightly stronger growth of 0.7% recorded in March.
5)The UK unemployment rate edged up to 4.4% for the February-April period, a slight increase from the previous quarter’s rate of 4.3%.
6)U.K. manufacturing production contracted by 1.4% in May, falling short of expectations for a flat performance (-0.2%) and reversing the previous month’s gain of 0.3%.
7)Germany’s Consumer Price Index (CPI) came in at 0.1% in May, matching expectations of 0.1% but lower than the previous month’s increase of 0.5%.
8)Australia’s employment change came in at 39.7K in May, exceeding expectations of 30.5K and higher than the previous month’s change of 37.4K.
9)Australia’s unemployment rate held steady at 4.0% in May, matching expectations and remaining near historic lows.
10)As widely expected, the BOJ kept its short-term policy rate target in a range of 0-0.1% by a unanimous vote. It also left unchanged the pace of monthly bond buying at roughly 6 trillion yen ($38 billion).
11)Japan’s Gross Domestic Product (GDP) contracted by -0.5% quarter-on-quarter, which was in line with the forecast of -0.5% but lower than the previous quarter’s growth of 0.1%.
12)Japan’s year-on-year GDP Price Index came in at 3.4%, lower than the forecast of 3.7% and the previous reading of 3.9%.
13)China’s consumer inflation held steady at 0.3% in May compared to April, indicating little change in prices for consumers. However, producer prices, which reflect prices at the factory level, continued to decline. The producer price index fell by 1.4%, which is a 2.5% improvement from the previous month’s decrease of 3.9%. This suggests ongoing deflationary pressures in China’s manufacturing PMI.
