Good Morning Treasurers,
This is your host Parthesh Shah, Co-Founder of Knight Fintech and you are listening to Knight Snippets.
Here is all what you need to know before going into trade for 15-Jan-2021.
International Market:
- In US, Treasury yields rose on Thursday after dovish comments from Federal Reserve Chairman Jerome Powell boosted expectations for a jump in inflation, and before President-elect Joe Biden was to announce details of a new stimulus package
- Expectation is President Joe Biden is about to announce $1.9 tn of fiscal stimulus
- With expected future inflation, US 10-year was up 5 bps back to 1.15% and 30-year up 6 bps back to 1.88% on Thursday
Crude Oil Market:
- Crude is at $56.38/bbl; range-bound markets
- Crude short term range: $54-57
Currency Market:
- Dollar index (DXY) is at: 90.29
- DXY today's range: 89.51 - 90.52
- Even after Joe Biden's anticipated larger stimulus news, DXY is stable and that shows the DXY strength
- USDCNY or Chinese yuan is at 6.47
- USDINR with a low of 72.97, closed at 73.04
- The force was able to break 73.00 level, but not retreated
Domestic Market:
- Government bond prices rose yesterday as cut-off prices set by the RBI for its bond purchases through special open market operations were higher than those prevailing in the secondary market
14-Jan-2021 - Special OMO cut-offs were as follows:
- 5.22 GS 2025 @ 5.18 or 100.14
- 5.77 GS 2030 @ 5.92 or 98.88
- 6.57 GS 2033 @ 6.29 or 102.38
With these higher cut-offs gave market another hope that RBI is keen keeing a lid on the yields
- Shorter-end of the yield curve has seen a drastic increase in the rates after RBI announced 14-day variable rate reverse repo window today
- 5.15 GS 2025, closed at 5.23% Vs 5.26% the previous day
- 5.77 GS 2030, closed at 5.92% Vs 5.95% the previous day
- G-Sec auction is scheduled today and Knight Research will be available with cut-offs are 10.40am
That's it for today. You were listening to Knight Snippets with Parthesh Shah from Knight Fintech.
See you next week with the new episode of Knight Snippets.
| Indicator | Last | Expected | AsOn | Next |
|---|---|---|---|---|
| Continuing Jobless Claims [US] | 5,198 | 5,072 | 11/01/21 | 14/01/21 |
| Foreign Exchange Reserves [IN] | 586,082 | 594,582 | 11/01/21 | 15/01/21 |
| Initial Jobless Claims [US] | 790.0 | 787.0 | 11/01/21 | 14/01/21 |
| Interest Rate Decision [KR] | 0.50 | 0.50 | 11/01/21 | 15/01/21 |
| WPI FUEL YOY DEC [IN] | 1.48 | 1.55 | 11/01/21 | 14/01/21 |
| WPI Manufacturing YoY DEC [IN] | 1.48 | 1.55 | 11/01/21 | 14/01/21 |
| Jobless Claims 4 Week Average [US] | 837.5 | 818.8 | 11/01/21 | 14/01/21 |
| WPI Food YoY DEC [IN] | 1.48 | 1.55 | 11/01/21 | 14/01/21 |
| WPI Inflation YoY DEC [IN] | 1.48 | 1.55 | 11/01/21 | 14/01/21 |
| Exports Price YoY DEC [US] | 123.1 | 123.8 | 11/01/21 | 14/01/21 |
| Stock Investment by Foreigners [JP] | -85.5 | 580.8 | 11/01/21 | 15/01/21 |
| Housing Price Index YoY DEC [CN] | 4.00 | 3.80 | 11/01/21 | 15/01/21 |
| Deposit Growth YoY [IN] | 11.3 | 11.5 | 11/01/21 | 15/01/21 |
| Exports YoY DEC [KR] | 95.5 | 92.0 | 11/01/21 | 14/01/21 |
| Foreign Bond Investment [JP] | -291.6 | 730.7 | 11/01/21 | 15/01/21 |
| Export Price MoM DEC [US] | 123.1 | 123.8 | 11/01/21 | 14/01/21 |
| Import Price YoY DEC [KR] | 95.6 | 95.8 | 11/01/21 | 14/01/21 |
| Export YoY DEC [CN] | 2,372 | 2,681 | 11/01/21 | 14/01/21 |
| PPI MoM DEC [JP] | 99.9 | 99.9 | 11/01/21 | 14/01/21 |
| PPI YoY DEC [JP] | -2.10 | -2.20 | 11/01/21 | 14/01/21 |
| Import Price MoM DEC [US] | 123.3 | 123.4 | 11/01/21 | 14/01/21 |
| Balance Of Trade DEC [CN] | 584.4 | 754.3 | 11/01/21 | 14/01/21 |
| Bank Loan Growth YoY [IN] | 6.10 | 6.70 | 11/01/21 | 15/01/21 |
| FDI (YTD) YoY DEC [CN] | 1,151 | 1,372 | 11/01/21 | 14/01/21 |
| Import Price YoY DEC [US] | 123.3 | 123.4 | 11/01/21 | 14/01/21 |
| Import YoY DEC [CN] | 1,787 | 1,926 | 11/01/21 | 14/01/21 |
