17 JUN
Knight Snippet

Transcript

Good Morning Treasurers,

This is your host Parthesh Shah, from of Knight Fintech and you are listening to Knight Snippets.

Here is what you need to know before going into trade for 17-June-2022.

International Market:

- A big sell_off was seen in equities market readjusting to the new world

- Nasdaq 100 was down by 4.00% and Dow Jones down by 2.42%

- Nervous equities holders took shelter under US treasuries

- US 10-year with this renewed interest now trades at 3.26%

- A shocking 50 bps rate hike from Swiss National Bank (which is first hike in last 15 years)

- Policy rate for Swiss is now -0.25% from -0.75%

- Now, Japan is the only left-out developed countries which has not given any guidance on rate hikes

Crude Oil Market:

- Crude is trading at $118.90/bbl

- Crude Short Term Range: $116-122

Currency Market:

- Dollar index (DXY) is at: 104.02

- DXY today's range: 103.56 - 104.270

- USDCNY or Chinese yuan is at 6.70

- USDINR with a intra-day high of 78.00, closed at 78.10

Resistance: 77.85

Support: 78.30

Trading strategy for USDINR:

- Again, after making an intra-day high of 78.00, USDINR closed at 78.10

- Hence, USDINR is directionless, but equities sell_off by FIIs (if any in Indian markets) will have an additional pressure on USDINR weakness

Domestic Market:

- Indian bonds market started with a positive note with expected 3-4 bps higher, but could not sustain the gains and closed at higher yields

- 5.74 GS 2026 closed at 7.32% Vs 7.31%

- 6.54 GS 2032 closed at 7.61% Vs 7.59%

- 6.67 GS 2035 closed at 7.73% Vs 7.72%

Trading Range:

- 6.54 GS 2032: 7.57% - 7.64%

Knight Research's view:

- Knight Research had a BUY call for 5-year @ 7.31% and at the same time, our research team had suggested a SELL @ 7.26%

- Both the calls were executed perfectly yesterday and 5-year is again @ 7.32%

- Again, 5.74 GS 2026 @ 7.34% looks attractive

That's it for today.

See you next week with the new episode from Knight Snippets.

Macro Economic Events

Indicator Last Expected AsOn Next
PPI (MoM) (May)   [RU] 5.90 6.30 20/06/22 22/06/22
Foreign Bonds Buying   [JP] -830.7 -867.2 21/06/22 23/06/22
House Price Index (QoQ) (Q1)   [AU] 4.70 1.40 17/06/22 20/06/22
Foreign,Buying Treasury Bonds   [US] 75.3 48.8 14/06/22 16/06/22
CPI (YoY) (May)   [GB] 9.00 9.10 20/06/22 22/06/22
Industrial Production (YoY) (May)   [US] 5.36 6.40 15/06/22 17/06/22
Trade Balance (MoM) (May)   [NZ] 440.0 263.0 20/06/22 22/06/22
FX Reserves USD   [IN] 601.1 596.5 22/06/22 24/06/22
Consumer Confidence (June)   [EU] -22.0 -21.1 20/06/22 22/06/22
Construction Output (MoM) (Apr)   [EU] 1.06 0.00 17/06/22 20/06/22
Unemployment Rate (May)   [AU] 3.90 3.90 14/06/22 16/06/22
Retail Sales (YoY) (May)   [GB] 1.30 -7.20 22/06/22 24/06/22
Inital Jobless Claims   [US] 232,000 215,000 21/06/22 23/06/22
Services PMI   [AU] 56.1 53.2 21/06/22 23/06/22
MI Leading Index (MoM)   [AU] -0.20 -0.10 20/06/22 22/06/22
FX Reserves USD   [IN] 601.4 601.1 15/06/22 17/06/22
German PPI (MoM) (May)   [EU] 4.90 1.40 17/06/22 20/06/22
CPI (MoM) (May)   [EU] 0.60 0.60 15/06/22 17/06/22
Trade Balance (May)   [CH] 2.97 4.12 18/06/22 21/06/22
CPI (YoY) (May)   [HK] 1.70 1.80 18/06/22 21/06/22
Manufacturing PMI   [AU] 58.8 55.3 21/06/22 23/06/22
Foreign Bonds Buying   [JP] -1,138 -841 14/06/22 16/06/22
German PPI (YoY) (May)   [EU] 30.9 31.5 17/06/22 20/06/22
Deposit Growth   [IN] 9.70 9.30 15/06/22 17/06/22
Bank Loan Growth   [IN] 11.9 12.1 15/06/22 17/06/22
Trade Balance (May)   [JP] -414.0 -1,150.0 14/06/22 16/06/22
Retail Sales (MoM) (Apr)   [CA] 0.20 1.40 18/06/22 21/06/22

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
7.80% APSDL 2031 9 500 7.84%-7.85% 29/06/22 17:02 7.80% 500 Yield 17/06/22 21/06/22 22/06/22
364 DTB 22/06/2023 364 D 8000 6.20%- 6.24% 22/06/22 15:07 6.28% 8000 Yield 17/06/22 22/06/22 23/06/22
7.88% NLSDL 2032 10 400 7.85%- 7.86% 29/06/22 16:55 7.88% 400 Yield 17/06/22 21/06/22 22/06/22
7.85% RJSDL 2039 17 1000 8.00%- 8.02% 29/06/22 16:56 7.85% 1000 Yield 17/06/22 21/06/22 22/06/22
6.99% GS 2051 29 9000 7.91%- 7.93% 17/06/22 15:17 7.8954% 9000 Yield 13/06/22 17/06/22 20/06/22
7.54% GS 2036 14 10000 97.8800- 97.9000 17/06/22 15:16 97.9500 10000 Yield 13/06/22 17/06/22 20/06/22
6.95% GS 2061 39 9000 7.78% - 7.80% 24/06/22 17:11 7.7053% 9000 Yield 20/06/22 24/06/22 27/06/22
6.54% GS 2032 10 13000 93.8500- 93.8700 24/06/22 17:10 93.9800 13000 Yield 20/06/22 24/06/22 27/06/22
New GS 2027 5 9000 7.40% - 7.42% 17/06/22 15:13 7.38% 9000 Yield 13/06/22 17/06/22 20/06/22
7.10% GS 2029 7 7000 98.6100- 98.6300 24/06/22 17:09 98.5600 7000 Yield 20/06/22 24/06/22 27/06/22
7.84% TNSDL 2052 30 1000 8.07%- 8.08% 29/06/22 17:00 7.84% 1000 Yield 17/06/22 21/06/22 22/06/22
91 DTB 22/09/2022 91 13000 5.05%- 5.08% 22/06/22 17:27 5.0875% 13000 Yield 17/06/22 22/06/22 23/06/22
NEW GS 2024 2 4000 6.58%- 6.60% 24/06/22 16:54 6.69% 4000 Yield 20/06/22 24/06/22 27/06/22
182 DTB 22/12/2022 182 D 12000 5.72%- 5.76% 22/06/22 15:06 5.7559% 12000 Yield 17/06/22 22/06/22 23/06/22
GOI FRB 2034 12 4000 6.99%- 7.00% 17/06/22 15:14 7.0816% 4000 Yield 13/06/22 17/06/22 20/06/22
7.86% MZSDL 2032 10 100 7.84%-7.85% 29/06/22 16:54 7.86% 100 Yield 17/06/22 21/06/22 22/06/22
7.86% ASSDL 2032 10 1000 7.85%- 7.86% 29/06/22 16:55 7.86% 1000 Yield 17/06/22 21/06/22 22/06/22
7.83% RJSDL 2032 10 500 7.83%- 7.84% 29/06/22 17:01 7.83% 1000 Yield 17/06/22 21/06/22 22/06/22
7.85% APSDL 2037 15 500 8.00%- 8.02% 29/06/22 16:59 7.85% 500 Yield 17/06/22 21/06/22 22/06/22
7.85% RJSDL 2037 15 1000 7.99%- 8.00% 29/06/22 16:59 7.85% 1000 Yield 17/06/22 21/06/22 22/06/22

Credit Research: Exposures and Next IP Dates

HDB Financial Services Ltd.

Non Convertible Debenture