11 AUG
Knight Snippet

Transcript

Good morning Treasurers,

This is your host Priyancka Mahore, from Knight Fintech and you are listening to Knight Snippets. Here is what you need to know before going into trade for the day.

International market news:

Yesterday the US yield 10 year bond yield traded in range of 2.65% to 2.82%.

It dived to make day low at 2.65% but due to selling could not sustain at that level and closed at 2.79%.

Yesterday the US CPI numbers for July were announced at 8.5% slightly below expected number of 8.7%.

Stucked between inflation and recession fears, the traders remained indecisive for the day.

With cooling off of global concerns regarding Ukraine Russia war, heating oil prices and US inflation, demand for USD as safe haven has reduced.

DXY is currently trading at 105.42

Yesterday it fell from high of 106.40 to low of 104.63 but bounced back to retest average rate of last 50 day closing.

Crude Oil Market

In absense of any announcement from Oil producing countries and any major global event, the Brent was traded at almost same level.

With Baltic Dry index falling from 3369 to 1566, there is substantial fall in the cost of transportation due to lower demand.

Yesterday Brent october future traded in between 93.67 to 97.77 and presently trading at $97.10

Domestic market

The USD INR is trading at 79.52

With Dollar index trading in range bound manner, the USD INR also remained in range of 79.41-79.66 for the day.

Above 79.70 or below 79.40 can be a sharp move.

The domestic 10 year Gsec yield for 6.54% GS 2032 paper yesterday fell from 7.367 to 7.31 and closed at day's low.

It has almost filled the gap formed 2 days back.

With better than expected US CPI numbers, we can see some buying at this level. However domestic CPI numbers will give further direction.

Crude trading below $100 is also positive for bond market.

That's it for today.

See you tomorrow with the new episode from Knight Snippets.

Macro Economic Events

Indicator Last Expected AsOn Next
CPI (YoY) (Jul)   [GB] 9.10 9.30 12/08/22 17/08/22
CPI (YoY) (Jul)   [IN] 7.04 7.03 10/08/22 12/08/22
Industrial Production (YoY) (Jun)   [IN] 7.10 20.60 10/08/22 12/08/22
PPI (MoM) (Jul)   [JP] 0.1000 0.5000 08/08/22 10/08/22
PPI (MoM) (Jul)   [US] 0.90 0.80 09/08/22 11/08/22
Unemployment Rate (Jul)   [AU] 3.90 3.80 13/08/22 18/08/22
German CPI (MoM) (Jul)   [EU] 0.1000 0.6000 08/08/22 10/08/22
Trade Balance (Feb)   [RU] 26.7 21.2 09/08/22 11/08/22
Trade Balance (Jul)   [JP] -1,399 -1,405 12/08/22 17/08/22
GDP (QoQ) (Q2)   [GB] 0.80 0.00 10/08/22 12/08/22
Foreign Bonds Buying   [JP] 37.8 827.0 13/08/22 18/08/22
French CPI (YoY)   [EU] 5.80 6.00 10/08/22 12/08/22
CPI (YoY) (Jul)   [US] 8.60 8.80 08/08/22 10/08/22
M3 Money Supply   [IN] 8.90 7.90 08/08/22 10/08/22
FX Reserves, USD   [IN] 571.6 573.9 10/08/22 12/08/22
GDP (QoQ) (Q2)   [EU] 0.60 0.20 12/08/22 17/08/22
Retail Sales (YoY) (Jul)   [US] 8.18 8.42 12/08/22 17/08/22
CPI (YoY) (Jul)   [EU] 8.60 8.60 13/08/22 18/08/22
Foreign Bonds Buying   [JP] 112.0 37.1 09/08/22 11/08/22
Inital Jobless Claims   [US] 248,000 262,000 13/08/22 18/08/22
Deposit Growth   [IN] 9.80 8.40 10/08/22 12/08/22
Inital Jobless Claims   [US] 245,000 259,000 09/08/22 11/08/22

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
364 DTB 10/08/2023 364 D 5000 6.28%- 6.30% 10/08/22 13:50 6.2599% 5000 Yield 05/08/22 10/08/22 11/08/22
7.74% APSDL 2038 16 500 7.82%- 7.84% 18/08/22 15:05 7.74% 500 Yield 12/08/22 18/08/22 19/08/22
7.54% GS 2036 14 11000 100.05- 100.10 12/08/22 14:58 100.20 11000 Yield 08/08/22 12/08/22 15/08/22
182 DTB 09/02/2023 182 D 7000 5.95%- 5.96% 10/08/22 13:49 5.9630% 7000 Yield 05/08/22 10/08/22 11/08/22
GOI FRB 2028 6 4000 97.10- 97.12 12/08/22 14:57 0 0 Yield 08/08/22 12/08/22 15/08/22
91 DTB 10/11/2022 91 D 9000 5.58%- 5.60% 10/08/22 13:49 5.5949% 9000 Yield 05/08/22 10/08/22 11/08/22
364 DTB 17/08/2023 364 D 5000 6.22%- 6.24% 18/08/22 10:33 6.1980% 5000 Yield 11/08/22 17/08/22 18/08/22
7.60% TNSDL 2032 10 2000 7.62%- 7.64% 18/08/22 15:07 7.60% 2000 Yield 12/08/22 18/08/22 19/08/22
BRSDL 2032 10 1000 7.62%- 7.64% 18/08/22 15:06 7.65% 1000 Yield 12/08/22 18/08/22 19/08/22
91 DTB 17/11/2022 91 D 9000 5.55%- 5.57% 18/08/22 10:32 5.5598% 9000 Yield 11/08/22 17/08/22 18/08/22
6.99% GS 2051 29 8000 7.68%- 7.70% 12/08/22 14:59 7.6760% 8000 Yield 08/08/22 12/08/22 15/08/22
7.72% APSDL 2035 13 500 7.73%- 7.75% 18/08/22 15:04 7.72% 500 Yield 12/08/22 18/08/22 19/08/22
7.38% GS 2027 5 9000 101.45- 101.50 12/08/22 14:57 101.59 9000 Yield 08/08/22 12/08/22 15/08/22
182 DTB 16/02/2023 182 D 7000 5.88%- 5.90% 18/08/22 10:33 5.9099% 7000 Yield 11/08/22 17/08/22 18/08/22

Credit Research: Exposures and Next IP Dates

Bank Of Baroda

Debenture

Bajaj Finance Ltd.

Debenture