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Market Watch on a Rough Fixed Income Day

Deepak Shenoy1 min read
Quick Facts
What is "Market Watch on a Rough Fixed Income Day" about?
What category is this article in?
Fixed Income
Who wrote this article?
Deepak Shenoy, Capitalmind's research team.
When was this article published?
Published 24 July 2013.
How long does this article take to read?
1 min read

Fixed Income Markets are hurting big time. Here’s a quick update at 12 noon.

  • Call money (overnight interbank) is at 9.25%

  • RBI repo was about 33,263 cr. This is below the limit of around 38,000 crores.

  • CBLO markets (interbank borrowing) are at 8.50%

  • CD market at 11% [+2%] (Certificates of Deposit = <1 year wholesale borrowing by banks). That’s for a five day CD. Further out towards 1 year, rates are** 10%**.

  • Government Securities trade at 8.38% (2023), yields are up 20 bps. (0.2%). The 2026 has gone to 8.57% (again, 20 bps up).

  • 5 year corporate bonds are trading at** 10%**, which is about 0.50% higher than yesterday.

And Bank Stocks are, to put it mildly, screwed. The Index is down 5% for the day, and Yes bank is the worst hit at -10%.

(Why? See this)

Here’s the bank stock performance since before the RBI liquidity squeeze (July 15).

Bank Stocks Change from July 15

And then, like they say in a ghazal, forward-forward see, happens what.