The Indian 10Y finally managed to break the lower end of the trading range of 7.20-7.40, courtesy to dovish commentary by the US FED chairman. Market participants will closely monitor whether the Indian 10Y can manage to trade below 7.20 level or will again rise and settle in the range of 7.20-7.40. Rising Brent prices will be the key trigger that will drive the bond prices going forward.
Indian Debt
- The interbank call money rate ended at 6.80%.
- The Indian Government bond yield softened by 5bps during the week, as the US FED's commentary cheered the market.
- The yield of the 10-year benchmark 7.18% 2033 bond ended at 7.19%. The 10Y paper moved down by 5bps from 7.24 to 7.19 as the US FED's Chairman hinted of three rate cuts in year 2024, which resulted in rally in Indian 10Y.
| Debt Market Indicators |
Close |
Last week Close |
| Repo rate |
6.50 |
6.50 |
| 91 Days Tbill |
6.980 |
6.955 |
| 364 Days Tbill |
7.19 |
7.16 |
| 1 Y CP Rate |
7.90 |
7.95 |
| 1 Y CD Rate |
7.80 |
7.85 |
| 5 Y Gilt |
7.12 |
7.23 |
| 5 Y Corp bond |
8.05 |
8.10 |
| 10 Y Gilt |
7.19 |
7.24 |
| 10 Y Corp bond |
7.20 |
7.88 |
Market Trends
- The Indian rupee appreciated by 6 paise during the week.
- The US 10Y moved down by 20bps during the week, as market expects 75-90bps rate cut in 2024 after listening to Jerome Powell's speech.
- Brent Crude is currently trading at $77/barrel despite touching to $72/barrel during the week. The rise in Brent prices can be attributed to dovish signals from the US Federal Reserve, a weaker dollar and robust forecast for global oil demand in 2024.
| Indian Indicies |
Close |
Last week Close |
| Sensex |
70,807 |
69,521 |
| Nifty |
21,275 |
20,901 |
General News
- Indian CPI number for the month of November released during the week were on the expected line at 5.55%.
- The US Federal Reserve kept their repo rates unchanged in the range of 5.25% and 5.50%, their highest level in last 22 years.
- The US Fed Chairman signaled that they expect to make about 75bps cuts to their benchmark interest rate in 2024.
| Global Indices |
Close |
Last week close |
| DJIA |
37,248 |
36,117 |
| NASDAQ |
14,761 |
14,339 |
| US 10-Y |
3.95 |
4.16 |
| USD/INR |
83.3 |
83.36 |
| Brent (USD) |
77 |
75.15 |
Primary Issues
| Issuer Name |
Ratings |
Tenor |
Issue Size +
Greenshoe |
Open Date |
Exchange |
| Hinduja Leyland Finance Ltd |
CARE AA |
3 Years |
100+0 Cr |
15-Dec-23 |
BSE |
| Spandana Sphoorty Financial Ltd |
IND A |
2 Years |
100+100 Cr |
15-Dec-23 |
BSE |
Top Traded Bonds
The top traded bonds in the Market (Standard) lot during the week (11th-15th Dec) are listed below:
| ISIN |
Security Name |
Volume (Cr) |
Avg. yield % |
| INE476A08217 |
8.40 CANARA BANK PERP - C |
1,198.00 |
8.17 |
| INE556F08KL3 |
7.83 SIDBI 24NOV28 |
1,095.00 |
7.80 |
| INE261F08DD2 |
5.27 NABARD 29APR24 |
953.00 |
7.83 |
| INE916DA7RI1 |
5.74 KMPL 22OCT24 |
950.00 |
8.30 |
The top traded bonds in the Odd lot during the week (11th-15th Dec) are listed below:
| ISIN |
Security Name |
Volume (Cr) |
Avg. yield % |
| INE121A07RM2 |
8.60 CHOLA 07DEC28 |
121.75 |
8.53 |
| INE140R08106 |
9.75 CHAITANYA FIN CREDIT 10NOV2025 |
35.31 |
10.68 |
| INE515Q08242 |
12.25 ANNAPURNA FINANCE 07SEP2029 |
19.58 |
13.08 |
| INE891K08166 |
8.28 AXIS FIN 28OCT33 |
18.80 |
8.39 |