•Fixed Income

The New 10 Year Benchmark GOI 7.18 2033 traded between 7.13% – 7.19% during this week

Old 10 Year Benchmark GOI 7.26 2033 traded between 7.15% – 7.23% during this week, tracking movement in Crude Oil, Currency and US Treasury Yields

•Auction Highlights

RBI conducted the Auction for G-sec, SDL and T-Bill for the aggregated amount of INR 33,000 Crore, INR 15,700 Crore and INR 24,000 Crore respectively.

G-sec:

7.06% GS 2028 (99.50/7.1878%)

7.18% GS 2033 (100.15/7.1575%)

7.30% GS 2053 (99.48/7.3419%)

SDL Cutoff:

10 Years: AP 7.44%, AS 7.47%, GA 7.47%, TN 7.43%, UK 7.47%

11 Years: PN 7.45%

12 Years: HR 7.44%, MN 7.44%

13 Years: RJ 7.44%

15 Years: HP 7.42%

16 Years: TS 7.44%

20 Years: TS 7.40%, AP 7.40%

Reissue of 7.33% Maharashtra SGS 2031 issued on May 31, 2023 at 99.30/7.4478%

Reissue of 7.98% Rajasthan SDL 2042 issued on July 20, 2022 at 105.66/7.4167%

T-Bill Cutoff:

091 Days: INR 10000 Crore 98.3392/ 6.8001%

182 Days: INR 8000 Crore 96.6160/ 7.0243%

364 Days: INR 6000 Crore 93.4486/ 7.0300%\u0009

•Corporate Bond Highlights

AAA 5 Years PSU Bond traded between 7.62%-7.64% this week.

AAA 10 Years Private Bond traded between 7.73%-7.78% this week.

•New Issuances:

Aditya Birla Fashion and Retail Limited

Ratings: AA+ by CRISIL & IND

Issue Size: 750 + 0 Crs

Maturity Date: 12/09/2030

Allocated 750 Crs at 7.57%

Mindspace Business Parks Reit

Ratings: AAA/stable by CRISIL & ICRA

Issue Size: 500 + 0 Crs

Maturity Date: 10/09/2026

Allocated 500 Crs at 8.03%

Varroc Engineering Limited

Ratings: A+/stable by IND

Issue Size: 250 + 0 Crs

Maturity Date: 07/09/2028

Allocated 250 Crs at 9.20%

Shriram Finance Limited

Ratings: AA+/stable by CRISIL

Issue Size: 75 + 150 Cr

Maturity Date: 04/05/2026

Allocated 85 Crs at 8.70%

Toyota Financial Services India Limited

Ratings: AAA/stable by ICRA

Issue Size: 500 + 0 Crs

Maturity Date: 11/08/2028

Allocated 500 Crs at 8.12%

•Commodities:

1)Brent Crude Oil: $88.60-$91.15 (Per barrel)

2)WTI Crude Oil: $85.02-$88.08 (Per barrel)

3)Gold: INR 5,989-INR 6,032 24 Carat (1 Gram)

4)Silver: INR 74,000-INR 76,200 (1 KG)

•US Treasury Yield:

1)US 2 Year Treasury: 4.89%-5.03%

2)US 5 Years Treasury: 4.32%-4.45%

3)US 10 Years Treasury: 4.18%-4.30%

•News Highlights:

INDIA

1)The state governments have offered to sell SDLs worth Rs 15,100 crore on September 12, as against the scheduled market borrowing of Rs 8,100 crore.

2)India’s foreign exchange or forex reserves jumped by $4.039 billion to $598.897 billion for the week ended September 1, data from the Reserve Bank of India (RBI) showed on Friday, September 8. With this, forex reserves halted a two-week losing streak and an increase of $4.04 billion from the previous week, recorded the biggest gain in nearly two months.

3)India S&P Global India Services PMI slowed to 60.1 in August compared to July 62.3 while composite PMI fell to 60.9 compared to 619.

4)Central Board of Direct Taxes (CBDT) said the Income Tax Department has processed refunds of over Rs 2.45 lakh cr for 6.84 crore verified Income tax returns (ITR) till September 5.

5)SEBI chief said the regulator is planning to introduce a one-hour settlement of trades in the Indian stock markets by March 2024 and this will be followed by instantaneous settlement.

6)SEBI said credit rating agencies will have to submit their disclosures to the debenture trustees in a specified format for easier accessibility and analysis of the data submitted by them.

7)The Reserve Bank of India (RBI) on Friday announced its decision to discontinue the Incremental Cash Reserve Ratio (I-CRR) in a phased manner. This decision comes after a careful assessment of current and evolving liquidity conditions in the financial market.

8)The Finance Ministry in its annual status report said India’s external debt declined to 18.9% of GDP at the end of March 2023 from 20% last year.

9)National Payments Corporation of India (NPCI) launched new products to ensure more digital inclusivity of the payment service including a credit line on UP UPI Lite X for offline payments and a near field communication (NFC)- enabled Tap & Pay feature

10)The rupee depreciated for the fourth straight day and settled nine9 paise lower at its lifetime low of 83.22 (provisional) against the U.S. dollar on September 7 amid a firm American currency and elevated crude oil prices.

11)LIC Housing Finance accepts bids worth INR9.41 billion via four-year and 11-month bonds at 7.77% coupon

12)14D VRRR by RBI elicited a tepid response of INR 18,670 crore as against notified INR 50,000 crore in view of scheduled statutory payments.

13)India removed import duties on several US products, including chickpeas, lentils and apples etc. These duties were imposed in 2019 in response to America’s decision to increase tariffs on certain steel and aluminum products.

WORLD

1)Saudi news agency SPA, which quoted an official source from the Saudi Energy Ministry, said Saudi Arabia will extend the voluntary cut of one million barrels a day, which has gone into implementation in July and was extended to include August and September, for another three months until the end of December 2023.

2)U.S. initial jobless claims fell to 216,000 in the week ended Sept. 2, the lowest level since February and below market estimates (Refinitiv: 234,000), from a revised 229,000 in the prior week.

3)US ISM Services PMI rose to a six-month high of 54.5 in August versus 52.5 expected and 52.7 prior.

4)US S&P Global Services PMI slowed to 50.5 in August from 52.3 in July while composite PMI came in at 50.2 compared to 52.

5)Eurozone employment change rose by 0.2% in the three months leading to June of 2023, slowing from the 0.5% growth rate in the first quarter.

6)Eurozone economy expanded 0.5% on year in the second quarter of 2023, slightly below 0.6% seen in the previous estimates and easing from a 1.1% expansion in the previous quarter.

7)UK’s S&P Global/CIPS Composite PMI drops to 48.6, entering contraction territory for the first time since January.

8)UK S&P Global CIPS Construction PMI declined to 50.8 in August from 51.7 in July

9)Japanese economy grew by 4.8% on an annualized basis during the second quarter of 2023, compared with preliminary data of a 6.0% expansion and a downwardly revised 3.2% increase in the prior period.

10)Japan leading economic index declined to 107.6 in July from a downwardly revised final 108.8 in June while coincident economic index fell to 114.5, from an upwardly revised 115.6.

11)Australia’s Q2-23 annualized GDP growth came in at 2.1%, better than expected, but clocked a slowdown from 2.1% in Q1.

12)The Central Banks of Australia and Canada kept policy rates on hold but remained committed to consider further rate hikes, should the economic conditions .