22 JUN
Knight Snippet

Transcript

Good Morning Treasurers,

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

Here is what you need to know before going into trade for 22-June-2022.

International Market:

- US markets were closed on Monday

- Just to remind everyone,

1. US FED raised rates by 75 bps, the largest rate hike since 1994

2. Swiss National Bank surprised markets with its first rate hike in 15 years

3. Bank of England hiked rates by 25 bps for the fifth consecutive time

- US 10-year on Friday clsoed at 3.26%

Crude Oil Market:

- Crude is trading at $110.80/bbl

- Crude Short Term Range: $106-114

Currency Market:

- Dollar index (DXY) is at: 104.61

- DXY today's range: 104.42 - 104.99

- USDCNY or Chinese yuan is at 6.72

- USDINR with a intra-day high of 78.00, closed at 78.11

Resistance: 77.85

Support: 78.30

Trading strategy for USDINR:

- USDINR to trade range-bound

- 78.00 support is protected and RBI intervention at 78.30

Domestic Market:

- Crude at $110.80/bbl gives comfort to the Indian bond markets, but it won't last long

- 5.74 GS 2026 closed at 7.19% Vs 7.13%

- 6.54 GS 2032 closed at 7.48% Vs 7.42%

- 6.67 GS 2035 closed at 7.60% Vs 7.57%

SDL Auctions:

- AP 9-year @ 7.80%

- 10-year RJ @ 7.83%, AS, MZ @ 7.86%, NG @ 7.88%

- SDL Vs. G-Sec spreads @ 35-40bps

- Knight Research expects the spreads to widen to 55-60 bps in a quarter

Trading Range:

- 6.54 GS 2032: 7.45% - 7.52%

Knight Research's view:

- Knight's trading team took 2 rounds of 5.74 GS 2026 trading with 5-8 bps gain

- Entry near 7.34% yield level looks safe for 5.74 GS 2026

That's it for today.

See you tomorrow 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
CPI (YoY) (May)   [GB] 9.00 9.10 20/06/22 22/06/22
German Retail Sales (MoM) (May)   [EU] 0.90 -0.20 24/06/22 27/06/22
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
House Price Index (YoY) (Apr)   [US] 19.3 19.0 25/06/22 28/06/22
Leading Index (MoM)   [JP] 0.70 2.10 24/06/22 27/06/22
Retail Sales (YoY) (May)   [GB] 1.30 -7.20 22/06/22 24/06/22
Italian Industrial Sales (YoY) (Apr)   [EU] 20.8 21.4 25/06/22 28/06/22
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
Goods Trade Balalnce (May)   [US] -125.9 -105.9 25/06/22 28/06/22
GDP (QoQ) (Q1)   [US] -1.40 -1.30 27/06/22 29/06/22
M3 Money Supply   [IN] 8.80 8.60 27/06/22 29/06/22
MI Leading Index (MoM)   [AU] -0.20 -0.10 20/06/22 22/06/22
M3 Money Supply (MoM) (May)   [EU] 6.30 6.30 27/06/22 29/06/22
Foreign Exchange Flows   [BR] 1.61 -0.13 24/06/22 27/06/22
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
Retail Sales (MoM) (May)   [AU] 0.90 0.40 27/06/22 29/06/22
Manufacturing PMI   [AU] 58.8 55.3 21/06/22 23/06/22
Trade Balance   [HK] -37.3 -36.6 24/06/22 27/06/22
House Price Index (MoM (Apr)   [US] 1.90 1.50 25/06/22 28/06/22
Retail Sales (YoY) (May)   [JP] 3.10 3.30 27/06/22 29/06/22
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
7.94% TLSDL 2036 14 1000 0 28/06/22 18:47 7.94% 1000 Yield 24/06/22 28/06/22 29/06/22
7.86% HRSDSL 2032 10 2000 7.83%- 7.85% 28/06/22 18:43 7.86% 2000 Yield 24/06/22 28/06/22 29/06/22
7.95% APSDL 2040 18 500 7.89%- 7.91% 28/06/22 18:38 7.95% 500 Yield 24/06/22 28/06/22 29/06/22
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
7.81% TNSDL 2052 30 2000 8.06%- 8.08% 28/06/22 18:45 7.81% 2000 Yield 24/06/22 28/06/22 29/06/22
7.92% APSDL 2042 20 500 7.92% - 7.94% 28/06/22 18:42 7.92% 500 Yield 24/06/22 28/06/22 29/06/22
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
7.93% TLSDL 2035 13 1000 0 28/06/22 18:48 7.93% 1000 Yield 24/06/22 28/06/22 29/06/22
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
7.93% APSDL 2033 11 500 7.82%-7.83% 28/06/22 18:42 7.93% 500 Yield 24/06/22 28/06/22 29/06/22
7.85% MPSDL 2032 10 2000 7.82%-7.83% 28/06/22 18:43 7.85% 2000 Yield 24/06/22 28/06/22 29/06/22
91 DTB 29/09/2022 91 D 13000 5.10%- 5.11% 29/06/22 15:03 5.1595% 13000 Yield 24/06/22 29/06/22 30/06/22
7.94% HRSDSL 2034 12 2000 7.85%- 7.87% 28/06/22 18:40 7.94% 2000 Yield 24/06/22 28/06/22 29/06/22
7.94% APSDL 2034 12 500 7.83%- 7.84% 28/06/22 18:39 7.94% 500 Yield 24/06/22 28/06/22 29/06/22
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
364 DTB 29/06/2023 364 D 8000 6.29%- 6.31% 29/06/22 15:04 6.2870% 8000 Yield 24/06/22 29/06/22 30/06/22
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
7.82%GJSDL 2032 10 1000 7.75%- 7.76% 28/06/22 18:44 7.82% 1000 Yield 24/06/22 28/06/22 29/06/22
7.95% APSDL 2039 17 500 7.87%- 7.89% 28/06/22 18:37 7.95% 500 Yield 24/06/22 28/06/22 29/06/22
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
7.95% APSDL 2038 16 500 7.86%- 7.88% 28/06/22 18:50 7.95% 500 Yield 24/06/22 28/06/22 29/06/22
7.95% APSDL 2038 16 500 7.86%- 7.88% 28/06/22 18:38 7.95% 500 Yield 24/06/22 28/06/22 29/06/22
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
7.96% WBSDL 2037 15 2000 7.87%- 7.89% 28/06/22 18:37 7.96% 2000 Yield 24/06/22 28/06/22 29/06/22
7.85% ASSDL 2032 10 500 7.85%- 7.86% 28/06/22 18:44 7.85% 500 Yield 24/06/22 28/06/22 29/06/22
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
182 DTB 29/12/2022 182 D 12000 5.77%- 5.79% 29/06/22 15:03 5.7899% 12000 Yield 24/06/22 29/06/22 30/06/22
7.53% ASSDL 2027 5 500 7.60% - 7.62% 28/06/22 18:46 7.53% 500 Yield 24/06/22 28/06/22 29/06/22
7.93% TLSDL 2034 12 1000 0 28/06/22 18:48 7.93% 1000 Yield 24/06/22 28/06/22 29/06/22
7.81% RJSDL 2047 25 1000 7.97%- 7.99% 28/06/22 18:45 7.81% 1000 Yield 24/06/22 28/06/22 29/06/22

Credit Research: Exposures and Next IP Dates

Housing & Urban Development Corporation Ltd.

Debenture