August 17th to 24th, 2013

Market Developments

Weekly Money Market Snapshot

Source: RBI

10.00

10.05

10.10

10.15

10.20

10.25

10.30

5.005.506.006.507.007.508.008.509.009.50

10.0010.5011.00

12-Aug-13 13-Aug-13 14-Aug-13 19-Aug-13 20-Aug-13 21-Aug-13 22-Aug-13

%%

Repo - LAF Reverse Repo - LAF CBLO - Overnight Market Repo - Overnight

Cash Reserves Position of Scheduled Commercial Banks

Cash balances as on Amount in Rs. Cr

19/08/13 319,515

21/08/13 299,470

% Change -6.27%

Source : RBI ,latest data available till 21/08/2013 as on 26/08/2013

Movement of International Overnight Rate Benchmarks

Interbank rates

As on 16/08/13

As on 23/08/13

% Change

MIBOR 10.3391 10.3694 0.29%

GBP LIBOR 0.4781 0.4781 -

Yen Libor 0.0814 0.0814 -

USD LIBOR 0.1176 0.1168 -0.68% Source : Bloomberg

Week Ending Parameters CBLO (overnight) Market Repo (Overnight)

Cumulative Liquidity Adjustment Facility

(in Rs. Crs) Repo Reverse Repo

16/08/13 Cumulative Amount 259,545 64,538 154,684 207

ADT 51,909 21,513 38,671 52

23/08/13 Cumulative Amount 359,868 98,136 154,380 180

ADT 59,978 24,534 38,595 60

% Change 38.65% 52.06% -0.20% -13.04% ADT: Average Daily Turnover Source : RBI

Aug 17-24, 2013

• RBI sets higher-than-expected cut-off yields on short-end bonds…. more

Banks to get one-time relief on bond losses….more

RBI devolves 2020, 2025 and 2042 bonds….more

Bond yields off highs as rupee stabilises….more

AMCs can get membership of bourses to trade in debt segment….more

Bonds give banks a breather RBI steps trigger rally in prices….more

Offshore bonds for NRIs still an option; sovereign bonds not needed now….more

Bonds post biggest weekly gain since mid-January 2009….more

http://economictimes.indiatimes.com/markets/bonds/rbi-sets-higher-than-expected-cut-off-yields-on-short-end-bonds/articleshow/22001823.cmshttp://economictimes.indiatimes.com/markets/bonds/banks-to-get-one-time-relief-on-bond-losses/articleshow/21946615.cmshttp://economictimes.indiatimes.com/markets/bonds/rbi-devolves-2020-2025-and-2042-bonds-dealers/articleshow/22002187.cmshttp://economictimes.indiatimes.com/markets/bonds/bond-yields-off-highs-as-rupee-stabilises/articleshow/22000623.cmshttp://www.indiainfoline.com/Markets/News/AMCs-can-get-membership-of-bourses-to-trade-in-debt-segment/5762088178http://www.telegraphindia.com/1130822/jsp/business/story_17258095.jsphttp://economictimes.indiatimes.com/markets/bonds/offshore-bonds-for-nris-still-an-option-sovereign-bonds-not-needed-now-official/articleshow/21936670.cmshttp://economictimes.indiatimes.com/markets/bonds/bonds-post-biggest-weekly-gain-since-mid-january-2009/articleshow/22004677.cms

Turnover : Corporate Bonds , Certificate of Deposits & Commercial Paper

Week Ending on CB’s* CD’s CP’s Total

(Amt in Crs) Parameters No. of Trades

Value No. of Trades

Value No. of Trades

Value No. of Trades

Value

16/08/13

Cumulative 1,055 11,783 401 13,887 116 6,139 1,572 31,809

ADT 264 2,946 100 3,472 29 1,535 393 7,953

23/08/13 Cumulative 1,146 15,865 497 17,316 128 5,745 1,771 38,926

ADT 287 3,966 124 4,329 32 1,436 443 9,731

% Change 8.63% 34.64% 23.94% 24.69% 10.34% -6.42% 12.66% 22.37%

*CB`s data available till 22/08/13 as on 24/08/13 Source : FIMMDA & SEBI

Source: CCIL

Top 5 traded Corporate Bonds for the week ending 23rd August, 2013

Source: FIMMDA

10.87

9.63

10.43

10.98

10.75

8.00

9.00

10.00

11.00

12.00

13.00

0100200300400500600700800

8.84% REC 2014 8.82% REC 2023 8.65% BPCL 2017 9.65% HDFC 2014 8.14% IOCL 2018

Rs.

Crs

.

Value (in Rs. Crs) Weighted Average Yield

%

Top 5 traded Government Securities (GS) for the week ending 23rd August, 2013

8.65

9.06 9.059.13 9.12

8.008.108.208.308.408.508.608.708.808.909.009.109.20

05000

100001500020000250003000035000400004500050000

7.16% G.S 2023 8.20% G.S 2025 8.33% G.S 2026 7.28% G.S 2019 8.12% G.S 2020

Rs. C

rs.

Value (in Rs. Crs) Weighted Average Yield

%

Note: REC: Rural Electrification Corporation Limited; BPCL: Bharat Petroleum Corporation Limited;

HDFC: Housing Development Finance Corporation Limited; IOCL: Indian Oil Corporation Limited

7

8

9

10

11

12

1M 2M 3M 6M 9M 1Y 2Y 3Y 4Y 5Y 7Y 10Y

23/08/13 16/08/13

Mumbai OIS Benchmark rates

%

8.5

9

9.5

10

10.5

11

11.5

12

12.5

3M 6M 1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y15Y

%

23/08/13 16/08/13

Corporate Bonds (Composite)

7

7.5

8

8.5

9

9.5

10

10.5

11

11.5

3M

6M 2Y

3Y

4Y

5Y

6Y

7Y

8Y

9Y

10

Y

11

Y

12

Y

13

Y

17

Y

19

Y

22

Y

28

Y

29

Y

%

23/08/13 16/08/13

Government Yields

8

8.5

9

9.5

10

10.5

11

11.5

12

1M 3M 6M 9M 1Y

%

23/08/13 16/08/13

Certificate of Deposits

Benchmark Rates: A week - on - week comparison

Source: Bloomberg

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Aug 17-24, 2013

10

10.5

11

11.5

12

12.5

13

13.5

14

1M

2M

3M

4M

5M

6M

7M

8M

9M

10

M

11

M 1Y

23/08/13 16/08/13

Commercial Papers

%