• 15 JAN
  • Knight Snippet
  • 15/01/2021

Transcript

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.

Macro Economic Events

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

Auctions

Knight Statistical Poll vs. Actual Results
Security Name Tenure Notified Amount Expected
Cut-Off
Recommended At Actual-Cut-Off Amount Accepted Auction Type Announcement date Auction Date Settlement Date Source
6.67% GS 2050 30 Y 5000 6.52% - 6.54% 15/01/21 11:30 T.B.D T.B.D Yield 11/01/21 15/01/21 18/01/21
MGSDL 2030 10 Y 106 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
UPSDL 2030 10 Y 3000 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
GASDL 2030 30 Y 100 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
WBSDL 2035 15 Y 3000 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
UPSDL 2030 10 Y 3000 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
TSSDL 2040 20 Y 750 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
4.48% GS 2023 3 Y 6000 99.90 - 99.95 15/01/21 11:31 T.B.D T.B.D Price 11/01/21 15/01/21 18/01/21
MPSDL 2036 16 Y 1000 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
BRSDL 2025 5 Y 2000 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
KASDL 2036 16 Y 1000 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
KASDL 2032 12 Y 1000 T.B.D T.B.D T.B.D T.B.D Yield 14/01/21 19/01/21 20/01/21
6.22% GS 2035 15 Y 9000 98.70 - 98.75 15/01/21 11:32 T.B.D T.B.D Price 11/01/21 15/01/21 18/01/21

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