Informist, Thursday, Mar 23, 2023
By Parth Singh
MUMBAI – Yields on three-, and five-year corporate bonds fell in the secondary market today on the back of buying by mutual funds, as investors got clarity on the course of rate hikes by US Federal Reserve, dealers said.
However, yields on 10-year papers ended steady due to lack of significant activity in the long-term segment.
Money markets were closed Wednesday on the occasion of Gudi Padwa.
"Investors, who have cash-in-hand, are deploying money in the shorter end because they have better clarity over future rate hikes by the central banks both in India and US," a treasury official said. "The expected hike has built a positive sentiment in the market."
After the 25-basis-point interest rate increase, the US Federal Open Market Committee took its policy rate to a range of 4.75-5.00% on Wednesday. In a post-policy press conference, Fed Chair Jerome Powell said that the central bank will raise rates further if required, to bring inflation down to 2%.
Back home, market participants are expecting a similar 25 bps increase by the Reserve Bank of India's Monetary Policy Committee in its meeting in April, dealers said.
In the secondary market today, mutual funds were active on both the buying and selling side whereas traders and private banks were selling in the shorter end, dealers said.
Today, deals aggregating 115.79 bln rupees were recorded on the National Stock Exchange and BSE combined, as against 158.14 bln rupees on Tuesday.
Bonds issued by Housing Development Finance Corp, REC Ltd, Housing & Urban Development Corp, Indian Railway Finance Corp, Andhra Pradesh State Beverages Corp, and Power Finance Corp were traded the most across tenures in the secondary market today.
In the primary market, Indian Overseas Bank raised 10 bln rupees through Basel-III-compliant tier-II bonds maturing in 10 years, at a coupon of 9%. The issue was fully subscribed.
While Kerala Financial Corp borrowed 4.8 bln rupees through sale of 10-year papers at a fixed quarterly coupon of 8.9%, Mahanagar Telephone Nigam raised 634 mln rupees through government-guaranteed bonds maturing in 10 years at a semi-annual coupon of 7.75%.
On Friday, Power Finance Corp Ltd plans to raise up to 42 bln rupees through two bonds, one maturing on Apr 15, 2033 and other with maturity on Apr 15, 2033, and Punjab National Bank aims to borrow up to 20 bln rupees through issuance of Basel-III-compliant additional tier-I bonds.
Dishman Carbogen Amcis will tap the market to raise up to 1 bln rupees through bonds maturing Apr 27, 2026, at a coupon of 9.25%, while BoB Financial Solutions Ltd aims to raise 750 mln rupees through bonds maturing on Mar 25, 2033, at a coupon of 8.25%. Bidding for these bonds are also scheduled for Friday.
UDAY BONDS
In the secondary market, Ujwal DISCOM Assurance Yojana bonds worth 1.8 bln rupees were traded at a weighted average yield of 5.72-7.72%, according to data from the RBI's Negotiated Dealing System-Order Matching System.
* 1.73 bln rupees of Rajasthan's 2023 bonds were traded at 7.00%
* 51 mln rupees of Haryana's 2023 bonds were traded 5.72-7.05%
* 22.5 mln rupees of Tamil Nadu's 2028-2032 bonds were traded 7.62-7.72%
BENCHMARK LEVELS FOR CORPORATE BONDS:
TENURES | TODAY | MONDAY |
Three-year | 7.68-7.73% | 7.73-7.78% |
Five-year | 7.70-7.75% | 7.75-7.80% |
10-year | 7.72-7.76% | 7.70-7.75% |
Edited by Aditya Sakorkar
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 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Informist, Thursday, Mar 23, 2023
By Parth Singh
MUMBAI – Yields on three-, and five-year corporate bonds fell in the secondary market today on the back of buying by mutual funds, as investors got clarity on the course of rate hikes by US Federal Reserve, dealers said.
However, yields on 10-year papers ended steady due to lack of significant activity in the long-term segment.
Money markets were closed Wednesday on the occasion of Gudi Padwa.
"Investors, who have cash-in-hand, are deploying money in the shorter end because they have better clarity over future rate hikes by the central banks both in India and US," a treasury official said. "The expected hike has built a positive sentiment in the market."
After the 25-basis-point interest rate increase, the US Federal Open Market Committee took its policy rate to a range of 4.75-5.00% on Wednesday. In a post-policy press conference, Fed Chair Jerome Powell said that the central bank will raise rates further if required, to bring inflation down to 2%.
Back home, market participants are expecting a similar 25 bps increase by the Reserve Bank of India's Monetary Policy Committee in its meeting in April, dealers said.
In the secondary market today, mutual funds were active on both the buying and selling side whereas traders and private banks were selling in the shorter end, dealers said.
Today, deals aggregating 115.79 bln rupees were recorded on the National Stock Exchange and BSE combined, as against 158.14 bln rupees on Tuesday.
Bonds issued by Housing Development Finance Corp, REC Ltd, Housing & Urban Development Corp, Indian Railway Finance Corp, Andhra Pradesh State Beverages Corp, and Power Finance Corp were traded the most across tenures in the secondary market today.
In the primary market, Indian Overseas Bank raised 10 bln rupees through Basel-III-compliant tier-II bonds maturing in 10 years, at a coupon of 9%. The issue was fully subscribed.
While Kerala Financial Corp borrowed 4.8 bln rupees through sale of 10-year papers at a fixed quarterly coupon of 8.9%, Mahanagar Telephone Nigam raised 634 mln rupees through government-guaranteed bonds maturing in 10 years at a semi-annual coupon of 7.75%.
On Friday, Power Finance Corp Ltd plans to raise up to 42 bln rupees through two bonds, one maturing on Apr 15, 2033 and other with maturity on Apr 15, 2033, and Punjab National Bank aims to borrow up to 20 bln rupees through issuance of Basel-III-compliant additional tier-I bonds.
Dishman Carbogen Amcis will tap the market to raise up to 1 bln rupees through bonds maturing Apr 27, 2026, at a coupon of 9.25%, while BoB Financial Solutions Ltd aims to raise 750 mln rupees through bonds maturing on Mar 25, 2033, at a coupon of 8.25%. Bidding for these bonds are also scheduled for Friday.
UDAY BONDS
In the secondary market, Ujwal DISCOM Assurance Yojana bonds worth 1.8 bln rupees were traded at a weighted average yield of 5.72-7.72%, according to data from the RBI's Negotiated Dealing System-Order Matching System.
* 1.73 bln rupees of Rajasthan's 2023 bonds were traded at 7.00%
* 51 mln rupees of Haryana's 2023 bonds were traded 5.72-7.05%
* 22.5 mln rupees of Tamil Nadu's 2028-2032 bonds were traded 7.62-7.72%
BENCHMARK LEVELS FOR CORPORATE BONDS:
TENURES | TODAY | MONDAY |
Three-year | 7.68-7.73% | 7.73-7.78% |
Five-year | 7.70-7.75% | 7.75-7.80% |
10-year | 7.72-7.76% | 7.70-7.75% |
Edited by Aditya Sakorkar
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 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2023. All rights reserved.
