- India's WPI based primary articles inflation for the week-ended June 26 increased to 16.08% YoY as against 14.75% in the previous week yoy on account of steep rise in mineral prices.
- Fuel index also increased to 18.02% yoy as against 12.90% in the previous week on account of domestic fuel price hike.
- Post RBI hike of key policy rates, G-Sec yields opened the week high. Higher than expected cut-offs in G-Sec auctions saw the yields hardening further by week end. The 10 yr benchmark closed the week at 7.65%. (previous week’s close: 7.56%).
- The corporate bonds yields were range-bound during the week. 5 year AAA and 10 year AAA closed the week at 8.20% (Previous week’s close: 8.22%) and 8.73% (previous week’s close: 8.69%) respectively.
- During the week, the liquidity continued to be tight. The net LAF balance was average negative Rs. 52,000 cr as against negative 66,000 cr in the previous week. Overnight call was in range of 3.0%-5.85 % during the week.
- In T-bill auction 91 auction, day T-bill (Rs. 2000 cr) and 182 day T-bill (Rs. 1500 cr) saw higher cutoff of 5.37% (previous: 5.28%) and 5.78% (previous: 5.37%) respectively.
- RBI auctioned Gsec worth Rs 12,000 cr. The 7.17% GS 2015 (Rs 4,000 cr), 7.80% GS 2020 (Rs 5,000 cr) and 8.32% GS 2032 (Rs.3,000 cr) saw cut-off yields of 7.40%, 7.67% and 8.33% respectively.
- Next week, RBI will conduct auction of 91 day (Rs. 2,000 cr) and 364 day T-bill (Rs. 1000 cr) on July 14.
Source - RMF Research
Posted By - Chintan Dedhia
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