AIMIN

Nuvama Fixed Income Advisory Report : Bond Vector April-02-2025

Macro and Government Bond Commentary: Yields fall sharply following RBI’s OMO purchase announcement, positioning for change in stance in Apr MPC begins • The 10Y benchmark (6.79 GS 2034) opened sharply lower at 6.54% following RBI’s announcement of an OMO purchase of INR 800 bn (in four eq...

03 April, 2025 10:42:11

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II RBI’s Flexible Exchange Rate Management Drives INR Towards Fair Value as Seen in REER

RBI’s flexible exchange rate management drives INR towards fair value as seen in REER In this note, we look at trends in spot INR, and impact of changes in the central bank’s exchange rate management on fairness in the currency’s value over its peers. As on Feb’25, the REER stood at 102.37- i...

03 April, 2025 10:38:25

Nuvama Fixed Income Advisory Report : Bond Vector March-28-2025

Macro and Government Bond Commentary: Yields lower with softer H1 FY26 borrowing, year-end demand; liquidity conditions improve dramatically • The 10Y benchmark (6.79 GS 2034) opened mildly higher at 6.61% but traded with a downward bias through much of the day. Moves lower in yields was ...

01 April, 2025 11:21:22

Nuvama Fixed Income Advisory Report : Bond Vector March-27-2025

Macro and Government Bond Commentary: Yields steady as market participants await India H1 FY26 borrowing calendar • The 10Y benchmark (6.79 GS 2034) little changed at 6.60% in absence of fresh cues. Yields were ranged through the day, with market participants eagerly waiting for the H1 F...

28 March, 2025 10:28:57

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II IN Corporate Bond Spreads Narrow with Improvement in Liquidity Conditions, Optimism ...

IN corporate bond spreads narrow with improvement in liquidity conditions, optimism around aggressive policy easing The most important metric for assessing risk perception in the bond market is the credit spread which is the difference between the yield of a corporate bond and comparable risk...

27 March, 2025 17:49:36

Nuvama Fixed Income Advisory Report : Bond Vector March-26-2025

Macro and Government Bond Commentary: Govt. Bonds 26-Mar 25-Mar Change* Yields fall on optimism around H1 FY26 borrowing, replacement demand 3 mth T-Bill (Ind.) 6.48% 6.45% 3.00 from OMO settlement 6.79% 2034 6.60% 6.64% -3.41 • The 10Y benchmark (6.79 GS 2034) opened mildly lower despite mo...

27 March, 2025 14:54:59

Nuvama Fixed Income Advisory Report : Bond Vector March-25-2025

Macro and Government Bond Commentary: Yields rise with global benchmarks, liquidity conditions set to improve • The 10Y benchmark (6.79 GS 2034) opened little changed despite a rise in treasury yields overnight (following stronger than expected US S&P global services PMI as well as hawkish ...

26 March, 2025 10:33:01

Nuvama Fixed Income Advisory Report : Bond Vector March-24-2025

Macro and Government Bond Commentary: Yields little changed in absence of fresh cues, spot INR strengthens further • The 10Y benchmark (6.79 GS 2034) opened higher at 6.64% in sync with global benchmarks, though this upside in yields did not sustain. Yields quickly fell in the morning sessio...

25 March, 2025 10:22:19

Nuvama Fixed Income Advisory Report : Bond Vector March-21-2025

Macro and Government Bond Commentary: Yields lower with global benchmarks, strength in INR; GOI cash balances shoot up after quarterly advance tax payments • The 10Y benchmark (6.79 GS 2034) lower despite steady moves in treasury yields and fell in the morning session – likely aided by con...

24 March, 2025 10:42:10

Nuvama Fixed Income Advisory Report : Bond Vector March-20-2025

Macro and Government Bond Commentary: Yields lower with global benchmarks, strength in INR • The 10Y benchmark (6.79 GS 2034) lower tracking a fall in treasury yields overnight (with commentary from Fed chair Powell perceived to be doveish, with recent spurt in inflation expectations seen t...

21 March, 2025 10:22:04

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II Is The Fed Undermining Stagflation Risks

Is the Fed undermining stagflation risks? The 1970s paved the way for many firsts – first handheld calculator, the birth of the first test-tube baby, the first personal computer. Most importantly, it was also known for a period of high inflation accompanied by stagnating economic growth. By ...

20 March, 2025 14:12:37

Nuvama Fixed Income Advisory Report : Bond Vector March-19-2025

Macro and Government Bond Commentary: Yields continue lower following OMO purchase announcement, FOMC meeting outcome closely watched • The 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.66% following an announcement of OMO purchase auction of INR 500bn (to be held on 25th March)....

20 March, 2025 10:34:27

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II Liquidity Conditions Set to Improve Following RBI’s Durable Measures, Heavy Month-En...

Liquidity Conditions set to improve following RBI’s durable measures, heavy month-end spending India system liquidity deficit widened to INR 2.6tn or -1.12% of net demand and time liabilities (NDTL) as on 18th Mar– following quarterly advance tax payments, with further tightening likely on th...

19 March, 2025 14:27:34

Nuvama Fixed Income Advisory Report : Bond Vector March-18-2025

Macro and Government Bond Commentary: Yields continue lower with strength in INR, upbeat OMO purchase auction; RBI announces another OMO purchase auction of INR 500bn • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.69% in absence of fresh cues, with moves very ranged until no...

19 March, 2025 10:27:26

Nuvama Fixed Income Advisory Report : Bond Vector March-17-2025

Macro and Government Bond Commentary: Yields mildly lower with strength in INR, liquidity deficit widens on quarterly advance tax outflows • The 10Y benchmark (6.79 GS 2034) opened little changed on Monday despite a rise in treasury yields (with a sharp rise in inflation expectations in ...

18 March, 2025 10:22:55

Nuvama Fixed Income Advisory Report : Bond Vector March-13-2025

17 March, 2025 12:10:36

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II An Update on India Rates, Liquidity and The Path Ahead

An update on India rates, liquidity and the path ahead India Sovereign yield curve has bull steepened in Mar – indicating that the near end of the curve has outperformed the duration segment. This is likely on account of an improvement in system liquidity conditions. The average liquidity def...

13 March, 2025 10:25:06

Nuvama Fixed Income Advisory Report : Bond Vector March-12-2025

Macro and Government Bond Commentary: Yields mildly lower, India headline CPI lower than expected, though core CPI inflation spurts • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.69% despite a rise in treasury yields overnight (after stronger than expected US BLS nonfarm p...

13 March, 2025 10:20:02

Nuvama Fixed Income Advisory Report : Bond Vector March-11-2025

Macro and Government Bond Commentary: Yields mildly lower, SDL auction outcome along expected lines • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.70% despite a fall in treasury yields overnight (on global risk aversion amid renewed fears of a recession in the US). Yields tr...

12 March, 2025 11:01:16

Nuvama Fixed Income Advisory Report : Bond Vector March-10-2025

Macro and Government Bond Commentary: Yields close steady in absence of fresh cues, liquidity deficit widens mildly • The 10Y benchmark (6.79 GS 2034) opened mildly higher at 6.69% tracking a rise in treasury yields overnight (following cautious Fed chair Powell’s commentary). Yields trade...

11 March, 2025 10:24:20

Nuvama Fixed Income Advisory Report : Bond Vector March-07-2025

Macro and Government Bond Commentary: Yields close steady in absence of fresh cues, liquidity deficit widens mildly • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.68% in absence of fresh cues. Yields were ranged through the day in absence of fresh supply – driving the 10Y po...

10 March, 2025 10:42:45

Nuvama Fixed Income Advisory Report : Monthly Bond Compass February 2025 Edition

In this edition of Bond Compass, we highlight the key themes for Feb : • India G-sec yields edged lower in Feb, with more demand seen in the near end of the curve – aided by improvement in liquidity conditions. The RBI in Feb conducted a USD-INR buy-sell swap auction of INR 10bn – supporting du...

07 March, 2025 16:34:42

Nuvama Fixed Income Advisory Report : Bond Vector March-06-2025

Macro and Government Bond Commentary: Yields lower following RBI’s liquidity infusion announcements, liquidity deficit widens • The 10Y benchmark (6.79 GS 2034) opened lower at 6.79% after the RBI announced measures to inject durable liquidity (via INR 1tn OMOs as well as USD 10bn buy/se...

07 March, 2025 10:38:10

Nuvama Fixed Income Advisory Report : Bond Vector March-05-2025

Macro and Government Bond Commentary: Yields fall with receiving in OIS, liquidity deficit narrows markedly following USD/INR buy sell swap auction • The 10Y benchmark (6.79 GS 2034) opened mildly higher at 6.73% tracking a rise in treasury yields overnight. However, yields fell in the morn...

06 March, 2025 10:25:46

Nuvama Fixed Income Advisory Report : Bond Vector March-04-2025

Macro and Government Bond Commentary: Yields rise with higher SDL supply & weak auction results, liquidity deficit narrows on month-end GOI spending • The 10Y benchmark (6.79 GS 2034) opened lower at 6.72% tracking a fall in treasury yields overnight (following weaker than expected US ISM ...

05 March, 2025 10:36:52

Nuvama Fixed Income Advisory Report : Bond Vector March-03-2025

Macro and Government Bond Commentary: Yields mildly higher with global benchmarks, liquidity deficit narrows ahead of month-end GOI spends • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.73% (despite a rise in treasury yields overnight). Yields traded with a mildly upward bia...

04 March, 2025 10:30:29

Nuvama Fixed Income Advisory Report : Bond Vector February-28-2025

Macro and Government Bond Commentary: Yields rise with global benchmarks, better than expected GDP growth; liquidity deficit narrows ahead of month-end GOI spending • The 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.70% despite a rise in treasury yields overnight (following stronge...

03 March, 2025 10:59:20

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II Liquidity Conditions Eet to Improve on Month-End GOI Spending, Though System Will Li...

Liquidity conditions set to improve on month-end GOI spending, though system will likely remain in deficit through March India system liquidity conditions is set to improve over the next few days on the back of month-end GOI spending (salary disbursals and others). However, conditions will rem...

28 February, 2025 15:12:24

Nuvama Fixed Income Advisory Report : Bond Vector February-27-2025

Macro and Government Bond Commentary: Yields mostly steady, treasury yields edged higher with stronger than expected durable goods orders, upward revision in GDP deflator • The 10Y benchmark (6.79 GS 2034) opened little changed despite a fall in treasury yields over the past two days and c...

28 February, 2025 11:39:50

Nuvama Fixed Income Advisory Report : Bond Vector February-25-2025

Macro and Government Bond Commentary: Yields mildly higher with INR recording single biggest day fall in 3 weeks • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.70% in absence of fresh cues and was ranged until noon trade. Yields started edging higher early in the afternoon t...

27 February, 2025 10:33:47

Nuvama Fixed Income Advisory Report : Bond Vector February-24-2025

Macro and Government Bond Commentary: Yields close slightly lower with global benchmarks, liquidity deficit widens after GST outflows • The 10Y benchmark (6.79 GS 2034) opened lower at 6.69% tracking a sharp fall in treasury yields overnight (following weaker than expected US S&P global ...

25 February, 2025 10:24:39

Nuvama Fixed Income Advisory Report : Bond Vector February-21-2025

Macro and Government Bond Commentary: Yields close mildly higher with weak auction results, liquidity deficit widens after GST outflows • The 10Y benchmark (6.79 GS 2034) opened little changed despite a fall in treasury yields overnight (following an increase in weekly jobless claims). S...

24 February, 2025 10:51:36

Nuvama Fixed Income Advisory Report : Bond Vector February-20-2025

Macro and Government Bond Commentary: Yields close higher, liquidity deficit continues to narrow • The 10Y benchmark (6.79 GS 2034) opened slightly lower at 6.68% despite a rise in treasury yields overnight (following cautious FOMC comments in the minutes). Moves lower in yields did not su...

21 February, 2025 10:24:59

Nuvama Fixed Income Advisory Report : Bond Vector February-17-2025

Macro and Government Bond Commentary: Yields fall with global benchmarks, revision in OMO auction, liquidity deficit narrows • The 10Y benchmark (6.79 GS 2034) opened lower at 6.69% tracking a fall in treasury yields overnight (following weaker than expected US retail sales) as well as o...

18 February, 2025 10:05:36

Nuvama Fixed Income Advisory Report : Bond Vector February-14-2025

Macro and Government Bond Commentary: Yields reverse early downside, liquidity deficit widens ahead of GST outflows; treasury yields continue lower… • The 10Y benchmark (6.79 GS 2034) opened mildly lower with a sharp fall in treasury yields overnight (on reports that the US administration w...

17 February, 2025 10:44:15

Nuvama Fixed Income Advisory Report : Bond Vector February-13-2025

Macro and Government Bond Commentary: Yields rise with global benchmarks, liquidity deficit widens ahead of OMO purchase auction • The 10Y benchmark (6.79 GS 2034) opened slightly higher at 6.71% with a sharp rise in treasury yields overnight (after US CPI inflation beat expectations). Y...

14 February, 2025 10:29:33

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II A Quick Update on Liquidity Conditions System Liquidity Remains Tight, Though WACR w...

A quick update on liquidity conditions – system liquidity remains tight, though WACR within policy corridor India system liquidity remained tight through much of Feb, though the extent of deficit has narrowed from the levels witnessed in Jan. This is on account of RBI’s overnight (variable rat...

13 February, 2025 17:55:51

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II India Yield Spread to Widen on Limited Scope of Aggressive Easing, Better Liquidity ...

India yield spread to widen on limited scope of aggressive easing, better liquidity conditions India Jan CPI inflation was at a 5-month low of 4.31% compared to 5.22% previous – this was aided by softer inflation in food items such as vegetables (in line with seasonal trends), pulses, fruits,...

13 February, 2025 10:42:32

Nuvama Fixed Income Advisory Report : Bond Vector February-12-2025

Macro and Government Bond Commentary: Yields mildly higher as core inflation edges upwards, US inflation beats expectations • The 10Y benchmark (6.79 GS 2034) opened flat at 6.70% despite a continued rise in treasury yields (on positioning ahead if US CPI inflation as well as Chair Powel...

13 February, 2025 10:36:19

Nuvama Fixed Income Advisory Report : Bond Vector February-11-2025

Macro and Government Bond Commentary: Yields fall after RBI revises OMO auction size, liquidity deficit widens • The 10Y benchmark (6.79 GS 2034) opened lower at 6.69% after the RBI increased the OMO purchase auction amount to INR 400bn from INR 200bn notified. Further moves lower in yield...

11 February, 2025 18:25:34

Nuvama Fixed Income Advisory Report : Bond Vector February-10-2025

Macro and Government Bond Commentary: Yields rise with global benchmarks, INR falling to all-time low; RBI increases OMO purchase auction size to INR 400bn • The 10Y benchmark (6.79 GS 2034) opened little changed despite a rise in treasury yields overnight (following stronger than expected...

11 February, 2025 10:32:31

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II MPC Feb Meeting Review

The MPC unanimously voted to cut policy rates by 25 bps – largely along expected lines, while maintaining the neutral policy stance. The committee acknowledged recent progress in disinflation along with a favourable outlook on food inflation and continued transmission of past rate hikes. The ...

10 February, 2025 10:46:32

Nuvama Fixed Income Advisory Report : Bond Vector February-07-2025

Macro and Government Bond Commentary: Yields rise with 25 bps RBI MPC rate cut perceived to be cautious, delay in revised LCR norms • The 10Y benchmark (6.79 GS 2034) lower ahead of the RBI MPC policy meeting. The RBI MPC unanimously voted to cut policy rates by 25 bps – in line with con...

10 February, 2025 10:38:28

Nuvama Fixed Income Advisory Report : Monthly Bond Compass January 2025 Edition

India G-sec yields were mildly higher tracking moves higher in treasury yields (though low beta correlation still exists),sharp depreciation in INR, and tight liquidity conditions. However, yields fell later in the month on improvement in liquidity conditions as well as positioning for a 25-bps r...

07 February, 2025 10:59:51

Nuvama Fixed Income Advisory Report : Bond Vector February-06-2025

Macro and Government Bond Commentary: Yields broadly steady ahead of RBI MPC meeting outcome • The 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.65% tracking a fall in treasury yields overnight (following softer than expected bond supply). Yields were ranged through the day, with m...

07 February, 2025 10:51:32

Nuvama Fixed Income Advisory Report : Bond Vector February-05-2025

Macro and Government Bond Commentary: Yields continue lower as markets position for a 25 bps rate cut in Feb, liquidity deficit narrows considerably • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.66% with a fall in treasury yields overnight (following worse than expected US ...

06 February, 2025 10:32:19

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II RBI MPC Feb Meeting Preview - Committee Likely to Cut Repo Rate by 25 bps

RBI MPC meeting preview – Committee likely to cut repo rate by 25 bps The Reserve Bank of India’s monetary policy committee shall announce the resolution of the Feb meeting outcome on Friday. We expect the committee to cut policy rates by 25 bps and retain the neutral policy stance. This is co...

05 February, 2025 15:03:18

Nuvama Fixed Income Advisory Report : Bond Vector February-04-2025

Macro and Government Bond Commentary: Yields little changed, liquidity deficit narrows • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.70% despite a rise in treasury yields overnight (following stronger than expected US ISM services PMI). Yields were ranged through much of th...

05 February, 2025 10:44:56

Nuvama Fixed Income Advisory Report : Bond Vector February-03-2025

Macro and Government Bond Commentary: Yields rise despite heavy borrowing in FY26 as markets position for a 25 bps rate cut in Feb MPC meeting • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.70% despite higher-than-expected gross borrowing in FY26 (at INR 14.82tn vs 14.4tn ex...

04 February, 2025 10:26:03

Nuvama Fixed Income Advisory Report : India FY26 Budget Review (Bond Markets Perspective)

Budget FY26 retained its focus on fiscal consolidation while setting a fiscal deficit target of 4.4% of GDP as against a revised 4.84% in the ongoing financial year. A downward revision in FY25 was brought about by reduced total expenditure – held back by capital spending (at 3.14% of GDP ove...

03 February, 2025 10:47:35

Nuvama Fixed Income Advisory Report : Bond Vector January-31-2025

Macro and Government Bond Commentary: Yields rise with weak auction results, liquidity deficit narrows as RBI’s OMO purchases picks up • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.68% despite a fall in treasury yields overnight (in line with US Q4 GDP missing expectation...

03 February, 2025 10:44:37

Nuvama Fixed Income Advisory Report : Bond Vector January-30-2025

Macro and Government Bond Commentary: Yields close steady, with FOMC meeting outcome largely along expected lines • The 10Y benchmark (6.79 GS 2034) opened little changed at 6.68% tracking global benchmarks (with FOMC meeting outcome largely along expected lines). Yields were ranged for ...

30 January, 2025 17:55:16

Nuvama Fixed Income Advisory Report : Bond Vector January-29-2025

Macro and Government Bond Commentary: Chatter of RBI demand in G-sec limits upside in yields, liquidity deficit narrows • 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.68% in absence of any fresh cues. Yields edged higher in the morning session likely tracking weakness in INR, th...

30 January, 2025 10:36:55

Nuvama Fixed Income Advisory Report : Bond Vector January-28-2025

Macro and Government Bond Commentary: Yields reverse early downside with paying in OIS, likely profit booking from PSU banks; liquidity deficit widens • 10Y benchmark (6.79 GS 2034) opened lower at 6.63% after the RBI announced a series of liquidity infusion measures (including OMO purchas...

29 January, 2025 10:38:14

Nuvama Fixed Income Advisory Report : Bond Vector January-27-2025

Macro and Government Bond Commentary: Yields fall on hopes around liquidity infusion measures, RBI announces INR 600bn OMO purchase, buy-sell swap & 56-day VRR • 10Y benchmark (6.79 GS 2034) opened lower at 6.68% on hopes that the RBI may conduct operations to ease liquidity conditions (af...

28 January, 2025 10:20:59

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II FY26 Budget preview Fiscal deficit and Gross Borrowing to be closely watched

FY26 Budget preview: Fiscal deficit & Gross Borrowing to be closely watched The finance minister will table the Union Budget on 1st Feb for FY26; this will be the first full-year budget for the re-elected government. This Budget comes against the backdrop of a sharper than anticipated slowdown...

27 January, 2025 14:54:08

Nuvama Fixed Income Advisory Report : Bond Vector January-24-2025

Macro and Government Bond Commentary: Yields fall despite moves higher in global benchmarks, liquidity deficit widens further • 10Y benchmark (6.79 GS 2034) opened mildly lower at 6.72% despite a rise in treasury yields overnight (with an increase is weekly jobless claims seen transient)....

27 January, 2025 10:37:47

Nuvama Fixed Income Advisory Report : Bond Vector January-23-2025

Macro and Government Bond Commentary: Yields mildly higher; RBI’s durable liquidity injection measures awaited • 10Y benchmark (6.79 GS 2034) opened mildly higher at 6.73% in absence of major global triggers. Yields were ranged through the day, with markets awaiting more clarity on central...

24 January, 2025 10:42:39

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II IN liquidity deficit widens after GST outflows, liquidity easing announcements awaited

IN liquidity deficit widens after GST outflows, liquidity easing announcements awaited India system liquidity slipped into deficit territory starting mid-December on the back of a sizeable increase in GOI cash balances (following advance tax outflows coupled with monthly GST payments). Tight c...

23 January, 2025 10:38:41

Nuvama Fixed Income Advisory Report : Bond Vector January-22-2025

Macro and Government Bond Commentary: Yields continue lower with receiving in OIS; RBI liquidity injection measures awaited • 10Y benchmark (6.79 GS 2034) opened little changed at 6.74% in sync with global benchmarks. Yields were ranged through the day, but with a downward bias, with the...

23 January, 2025 10:31:37

Nuvama Fixed Income Advisory Report : Bond Vector January-21-2025

Macro and Government Bond Commentary: Yields edge lower with receiving in OIS; early strength in INR reverses importers’ demand • 10Y benchmark (6.79 GS 2034) opened lower tracking a fall in treasury yields overnight (in absence of swift tariff announcements). Moves lower in yields were ...

22 January, 2025 10:33:08

Nuvama Fixed Income Advisory Report : Bond Vector January-20-2025

Macro and Government Bond Commentary: Yields little changed in absence of fresh cues, liquidity deficit set to widen • 10Y benchmark (6.79 GS 2034) opened mildly higher with global benchmarks (given stronger than expected US housing starts and building permits). Moves higher in yields did n...

21 January, 2025 10:30:26

Nuvama Fixed Income Advisory Report : Bond Vector January-17-2025

Macro and Government Bond Commentary: Yields rise on weak auction results, liquidity deficit widens ahead of GST outflows • 10Y benchmark (6.79 GS 2034) opened little changed at 6.74% despite a fall in treasury yields overnight (given weaker US retail sales and rise in weekly jobless cla...

20 January, 2025 10:42:24

Nuvama Fixed Income Advisory Report : Bond Vector January-16-2025

Macro and Government Bond Commentary: Yields fall with global benchmarks, hopes of further liquidity infusion by the RBI • 10Y benchmark (7.10 GS 2034) opened lower at 6.81% tracking a fall in treasury yields overnight (following softer than expected core CPI inflation). Yields fell furt...

17 January, 2025 10:30:07

Nuvama Fixed Income Advisory Report : Bond Vector January-15-2025

Macro and Government Bond Commentary: Yields edge lower with global benchmarks, correction in INR • 10Y benchmark (7.10 GS 2034) opened mildly lower at 6.85% tracking a fall in treasury yields overnight (following softer than expected US PPI inflation). Yields were ranged through the day o...

16 January, 2025 11:03:59

Nuvama Fixed Income Advisory Report : Bond Vector January-14-2025

Macro and Government Bond Commentary: Yields edge lower with global benchmarks, reports of FY26 fiscal deficit below 4.5%; INR continues to depreciate on talks of more flexible exchange rate management. 10Y benchmark (7.10 GS 2034) opened mildly lower at 6.88% tracking a fall in treasury y...

15 January, 2025 15:38:54

Nuvama Fixed Income Advisory Report : Bond Vector January-13-2025

Macro and Government Bond Commentary: Yields shoot up with global benchmarks, INR slips to fresh all-time low; liquidity deficit widens .10Y benchmark (7.10 GS 2034) opened higher at 6.83% tracking a sharp rise in treasury yields overnight (following stronger than expected US BLS nonfarm p...

14 January, 2025 15:40:16

Nuvama Fixed Income Advisory Report : Bond Vector January-10-2025

Macro and Government Bond Commentary: Yields close steady, US treasury yields spike following upbeat BLS nonfarm payrolls .10Y benchmark (7.10 GS 2034) opened little changed in absence of fresh cues, and was ranged for much of the day. Market participants closely awaited US BLS nonfarm pay...

13 January, 2025 15:54:18

Nuvama Fixed Income Advisory Report : Bond Vector January-09-2025

Macro and Government Bond Commentary: Yields reverse early upside, INR depreciation continues • 10Y benchmark (7.10 GS 2034) opened slightly lower tracking a fall in treasury yields overnight. Yields edged higher with the INR depreciating further. This upside in yields did not sustain, with...

09 January, 2025 19:17:55

Nuvama Fixed Income Advisory Report : Monthly Bond Compass Dec 2024 Edition

India G-sec yields edged lower in Dec, with markets hoping for a rate cut in the near term (as also reflected in receiving interest in the OIS). Moves lower in G-sec yields were limited with higher global benchmarks, sharp depreciation in INR. FPIs net bought in the debt segment last month. Thi...

09 January, 2025 16:56:29

Nuvama Fixed Income Advisory Report : Bond Vector January-08-2025

Macro and Government Bond Commentary: Yields rise with global benchmarks, liquidity deficit widens • 10Y benchmark (7.10 GS 2034) opened little changed at 6.79% despite a rise in treasury yields overnight (following stronger than expected ISM services PMI and US JOLTS job openings). Yields...

09 January, 2025 12:04:36

Nuvama Fixed Income Advisory Report : Bond Vector January-07-2025

Macro and Government Bond Commentary: Yields reverse early downside with first advance estimates for FY25 real GDP higher than expected • 10Y benchmark (7.10 GS 2034) opened little changed at 6.79% in absence of fresh cues. Yields fell early in the afternoon on positioning ahead of FY25 ...

08 January, 2025 10:39:11

Nuvama Fixed Income Advisory Report : Bond Vector January-06-2025

Macro and Government Bond Commentary: Yields reverse early upside with receiving in OIS, INR at fresh all-time low • 10Y benchmark (7.10 GS 2034) opened little lower at 6.81% (despite a rise in treasury yields overnight). Yields rose early in the afternoon, with spot INR rising to all-time ...

06 January, 2025 18:15:23

Nuvama Fixed Income Advisory Report : Bond Vector January-03-2025

Macro and Government Bond Commentary: Yields close steady in absence of major cues • 10Y benchmark (7.10 GS 2034) opened flat in absence of major cues overnight. Some selling was seen ahead of the auction result, which was largely along expected lines. The 10Yr point closed trade at 6.82% v...

06 January, 2025 10:42:31

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II Is further sizeable depreciation in INR likely

The Indian rupee had exhibited resilience for a significant period last year, as reflected in ranged movements despite sharp depreciation in emerging market currencies/trading partners. As seen in the chart below, the currency was ranged between 83.00-84.00 since Sep last year, with continued...

03 January, 2025 13:24:47

Nuvama Fixed Income Advisory Report : Bond Vector January-02-2025

Macro and Government Bond Commentary: Yields rise with INR depreciation, liquidity still in deficit despite CRR cuts, month-end GOI spends • 10Y benchmark (7.10 GS 2034) opened little changed in absence of fresh cues. Yields were ranged with a slightly upward bias – weighed by continued d...

03 January, 2025 10:33:26

Nuvama Fixed Income Advisory Report : Bond Vector January-01-2025

Macro and Government Bond Commentary: Yields rise following higher than anticipated Q4 SDL supply, liquidity deficit set to narrow with continued drawdown in GOI cash balances • 10Y benchmark (7.10 GS 2034) opened mildly higher following higher than anticipated SDL supply in the Jan-Mar qua...

02 January, 2025 10:25:14

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II SDL spreads widen in Dec, further pressure seen this quarter on heavy supply

The spread between the 10Y government bond yield and its comparative state development loans widened in Dec on account of higher debt supply. The spread widened to as much as 38 bps as against 29 bps in the previous month, but still remained lower than same time last year (46 bps). The RBI re...

01 January, 2025 13:14:31

Nuvama Fixed Income Advisory Report : Bond Vector December-31-2024

Macro and Government Bond Commentary: Yields mildly lower with global benchmarks, liquidity deficit set to narrow with a sharp drawdown in GOI cash balances • 10Y benchmark (7.10 GS 2034) opened mildly lower at 6.79% tracking a fall in treasury yields overnight. Yields were ranged for the ...

01 January, 2025 10:36:37

Nuvama Fixed Income Advisory Report : Bond Vector December-30-2024

Macro and Government Bond Commentary: Yields reverse early upside, liquidity deficit narrows • 10Y benchmark (7.10 GS 2034) opened little changed at 6.82% despite a rise in treasury yields overnight (with markets worrying around the impact of the upcoming administrations’ reflationary poli...

31 December, 2024 10:19:27

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II An update on liquidity conditions – Some respite likely this week following month-en...

India liquidity deficit was the widest since May’24 following quarterly advance tax payments and GST outflows. Impact of these frictional outflows were accentuated by consistent RBI intervention in FX markets (taking durable liquidity out of the system). The RBI has continued to undertake a s...

30 December, 2024 16:30:01

Nuvama Fixed Income Advisory Report : Bond Vector December-27-2024

Macro and Government Bond Commentary: Yields reverse early upside, INR slips to fresh all-time low of 85.80 • 10Y benchmark (7.10 GS 2034) opened little changed at 6.81% in absence of fresh cues overnight. Yields edged higher early in the afternoon tracking a rapid depreciation in INR (brou...

30 December, 2024 10:47:54

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II Rapid depreciation in INR, tight liquidity despite CRR cuts places RBI in a tough spot

Indian rupee slipped to a fresh life-time low of 85.68 (as on 1PM IST) on Friday – posting the biggest fall in over 24 months. This was accompanied by strength in the USD after minutes from the Bank of Japan’s recent policy meeting showed members cautious around raising rates amid ongoing geo...

27 December, 2024 14:47:38

Nuvama Fixed Income Advisory Report : Bond Vector December-26-2024

Macro and Government Bond Commentary: Yields mildly higher with INR slipping to fresh all-time low, system liquidity in deficit zone • 10Y benchmark (7.10 GS 2034) opened mildly higher at 6.81% likely with local currency at a fresh all-time low level. Yields were ranged through the day i...

27 December, 2024 10:25:50

Nuvama Fixed Income Advisory Report : Bond Vector December-24-2024

Macro and Government Bond Commentary: Yields steady on light volumes, liquidity deficit widens further on GST outflows • 10Y benchmark (7.10 GS 2034) opened little changed despite moves higher in treasury yields overnight (with markets factoring in less than 50 bps easing by the Fed next...

26 December, 2024 10:50:10

Nuvama Fixed Income Advisory Report : Bond Vector December-23-2024

Macro and Government Bond Commentary: Yields lower with global benchmarks, liquidity deficit widens • 10Y benchmark (7.10 GS 2034) opened lower at 6.81% tracking a fall in treasury yields overnight (following lesser than expected rise in PCE inflation). Yields were ranged through the day, ...

23 December, 2024 17:52:48

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II India MPC minutes along lines of policy statement, rates likely to remain ranged thi...

India MPC minutes for the Dec policy meeting were largely along the lines of the policy statement (wherein the committee held rates, with 4 members voting in favor of the outcome). India government bond yields opened mildly lower on Monday tracking global benchmarks, with 1Y OIS also broadly s...

23 December, 2024 12:42:23

Nuvama Fixed Income Advisory Report : Bond Vector December-20-2024

Macro and Government Bond Commentary: Yields reverse early upside, liquidity deficit widens • 10Y benchmark (7.10 GS 2034) opened higher at 6.83% tracking a rise in treasury yields overnight (following an upward revision in US GDP as well as fewer jobless claims). Moves higher in yields di...

23 December, 2024 10:57:18

Nuvama Fixed Income Advisory Report : Bond Vector December-19-2024

Macro and Government Bond Commentary: Yields rise with global benchmarks following more hawkish FOMC meeting outcome, weak INR • 10Y benchmark (7.10 GS 2034) opened higher at 6.82% tracking a rise in treasury yields overnight (following more hawkish than anticipated FOMC meeting outcome)...

20 December, 2024 10:40:56

Nuvama Fixed Income Advisory Report : Bond Vector December-18-2024

Macro and Government Bond Commentary: Yields mildly lower, FOMC meeting outcome watched • 10Y benchmark (7.10 GS 2034) opened lower at 6.79% despite steady moves in treasury yields (with stronger than expected US retail sales offset by weak industrial production data). Yields were ranged t...

19 December, 2024 10:56:12

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II Continued depreciation in INR, tight liquidity puts RBI in a tough spot, All eyes on...

The central bank appears to be in a tough spot. The INR has continued to depreciate to its lifetime low levels in Dec amid anecdotes of continued intervention in FX markets. The impossible trinity theory states that an economy cannot simultaneously achieve independent monetary policy, a fixed...

19 December, 2024 10:54:15

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II INR slips to life-time low, IN rates surge following substantially hawkish FOMC meet...

The INR slipped to its life-time low of 85.06 on Thursday, and IGB yields rose 3-4 bps across the curve following markedly hawkish FOMC Dec meeting outcome. The FOMC cut rates by 25 bps – this was along expected lines. Importantly, the dot-plot for the next two years was revised to signal few...

19 December, 2024 10:49:11

Nuvama Fixed Income Advisory Report : Fixed Income Snippets II Fed dot-plot to show fewer rate cuts next year, 25 bps easing discounted

The Federal Open Market Committee will announce the resolution of its Dec meeting tonight and will mostly deliver a 25-bps easing. This is already discounted by market participants as seen in CME Fed watch tool. Market participants closely watch potential revision in dot-plot (projected fed fu...

18 December, 2024 12:14:22

Nuvama Fixed Income Advisory Report : Bond Vector December-17-2024

Macro and Government Bond Commentary: Yields rise with global benchmarks, continued depreciation in INR • 10Y benchmark (7.10 GS 2034) opened higher tracking a rise in treasury yields overnight (following stronger than expected US S&P Global services PMI). Yields rose further in the day, a...

18 December, 2024 11:01:28

Nuvama Fixed Income Advisory Report : Bond Vector December-16-2024

Macro and Government Bond Commentary: Yields mildly higher with global benchmarks, liquidity surplus narrows • 10Y benchmark (7.10 GS 2034) opened little changed at 6.77% despite moves higher in treasury yields overnight (on positioning ahead of the FOMC meeting outcome this week along with...

17 December, 2024 11:10:26

Nuvama Fixed Income Advisory Report : Bond Vector December-13-2024

Macro and Government Bond Commentary: Yields mildly lower, liquidity surplus widens ahead of advance tax outflows • 10Y benchmark (7.10 GS 2034) opened little changed at 6.78% despite moves higher in treasury yields overnight (with worse than expected US PPI inflation). Yields were ranged ...

16 December, 2024 10:43:20

Nuvama Fixed Income Advisory Report : Bond Vector December-12-2024

Macro and Government Bond Commentary: Yields higher with global benchmarks, India CPI inflation slows along expected lines; RBI announced VRR auction of INR 750bn • 10Y benchmark (7.10 GS 2034) opened higher at 6.77% tracking a rise in treasury yields overnight. Yields were ranged ahead of...

13 December, 2024 10:46:36

Nuvama Fixed Income Advisory Report : Credit Report II Oxyzo Financial Services Limited (OFSL)

Oxyzo Financial Services Limited is a Reserve Bank of India registered Middle Layer Non-Banking Financial Company (NBFC) that provides working capital funding to largely small and medium enterprises (SMEs), Mid-Corporates and Co-lending space through partnerships. The Company got converte...

12 December, 2024 16:52:14

Nuvama Fixed Income Advisory Report : Credit Report II Muthoot Microfin Limited (MML)

MML, a part of Muthoot Pappachan Group (MPG), provides microfinance loans to women. MPG started its microfinance operations in 2010 as a separate division of Muthoot Fincorp Limited (MFL), the flagship company of the group. In December 2011, the group acquired a Mumbai-based nonbanking fin...

12 December, 2024 16:51:11

Nuvama Fixed Income Advisory Report : Credit Report II Muthoot Fincorp Limited (MFL)

Muthoot Fincorp Limited (MFL), the flagship Company of 137-year-old business conglomerate Muthoot Pappachan Group, is India’s leading NonBanking Financial Company (NBFC) with an aim to transform the lives of common man by ensuring their financial well-being through an array of varied produ...

12 December, 2024 16:50:16