More Stories

Informist, Tuesday, Oct. 29, 2024

NEW DELHI – On Wednesday, government bonds and overnight indexed swap rates may take cues from the movement in US Treasury yields after the release of the US Job Openings and Labor Turnover Survey for September at 1930 IST. Geopolitical developments in West Asia and crude oil prices will also be tracked, they said.

Trade volumes may be muted through the week as some traders are on leave during the festival season, with money markets shut for Diwali on Friday. Traders await a slew of US data such as the advance Jul-Sept GDP growth numbers, October employment report, and purchasing managers' indices for cues on the Federal Open Market Committee's pace of interest rate cuts. Traders will also watch for any cues on the outcome of the US presidential election next week.

On Wednesday, the one-day call money rate may open around the Reserve Bank of India's repo rate of 6.50% because of the demand for funds from banks in early trade for reserve requirements.

GOVERNMENT BONDS

Wednesday, government bond prices may take cues from the US September job openings and labor turnover survey due at 1930 IST, along with the overnight movement in US Treasury yields and crude oil prices, dealers said. Geopolitical developments in West Asia will also be keenly tracked.

Until the US presidential election on Nov. 5, traders are not expected to pick up large quantum of gilts, and will look at any indication of the election result for cues, dealers said. On the domestic front, the government's accounts for Apr-Sept and core sector data is due on Wednesday.

The yield on the 10-year benchmark 7.10%, 2034 bond is seen at 6.84-6.90%, while that on the 6.79%, 2034 bond is seen at 6.80-6.86% on Wednesday. On Tuesday, the 7.10% 2034 bond closed at INR 101.68, or 6.86% yield, while the 6.79%, 2034 bond closed at INR 99.78 or 6.82%.

OIS RATES

On Wednesday, swap rates are seen taking cues from the Job Openings and Labor Turnover Survey due at 1930 IST. The movement of US Treasury yields and crude oil prices will also be closely watched. Further cues on the outcome of the US elections on Nov. 5, will also be eyed, dealers said.

The swap rate in the one-year segment is seen at 6.50-6.65% and in the five-year segment at 6.15-6.40%. On Tuesday, the one-year swap rate ended at 6.54% and the five-year swap rate closed at 6.29%.

CALL

On Wednesday, the one-day call money rate may open around the RBI's repo rate of 6.50% because of demand for funds from banks early in trade for reserve requirements. During the day, the call rate is seen in a range of 6.00-6.75%, dealers said. On Tuesday, the one-day call rate ended at 6.50%.

RBI AUCTION

--RBI to auction 91-day T-bills worth INR 70 billion

--RBI to auction 182-day T-bills worth INR 60 billion

--RBI to auction 364-day T-bills worth INR 60 billion

LIQUIDITY

--Total net inflows of INR 207.19 billion. Calculation of flows does not take into account redemption of the standing deposit facility and scheduled variable rate repo and reverse repo.

* Inflows

--INR 19.06 billion as coupon on 7.33%, 2026 gilt

--INR 12.19 billion as coupon on 2034 floating rate bond

--INR 2.06 billion as coupon on state bonds

--INR 10.00 billion as redemption of state bonds

* Outflows

--INR 250.50 billion as payment for state bonds

End

Reported by Aaryan Khanna

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.