Nisha C.’s Post

Par Yield and Yield Curve Insights (data from 06/12/12, latest available data on Financial Benchmarks India pvt ltd). The yield curve is a powerful tool for understanding market dynamics and overall market conditions. Par Yield - The par rate is the yield-to-maturity (YTM) of a bond that equals the bond's par value A Par yield curve - It is a graphical representation of the yields of hypothetical Treasury securities (interpolated yields) with prices at par. Yield Curve Inversions An inversion occurs when short-term yields exceed long-term yields, often signalling market uncertainty or expectations of an economic slowdown. To check for an inverted yield curve, you can compare the yield of a 10-year Indian government bond to the yield of a 2-year Indian government bond. Inspired by the weekly market outlook done by Mark Meldrum, Ph.D. Source of data - https://www.fbil.org.in/

Understanding Basis Points (bps) 💡In the world of finance, precision is key. That's where basis points (bps) come into play! 🔹 What are Basis Points?A basis point is equal to 0.01% or 1/100th of a percentage point.It's a unit of measure used to describe changes in interest rates, bond yields, and other financial percentages. 🔹 Why are they Important?They eliminate ambiguity in financial communication.For instance, an interest rate increase from 3.00% to 3.25% can be clearly expressed as a 25 bps increase. 🔹 Real-world Example:If the Reserve Bank of India (RBI) increases the repo rate by 50 bps, it means the rate has increased by 0.50%. 🔹 Stay Ahead:Understanding bps can help you make informed decisions in investments and financial planning.Stay informed, stay empowered! 🚀 #finance #linkedin #investment #india

Bond market recap: quick highlights from last week and the week ahead. * Government bond yields fell sharply on Friday as growth fell year-on-year for the second quarter. The drop from 6.7% to 5.4% in growth data has boosted hopes of RBI relaxing liquidity and lowering interest rates. The 10-year government bond yield fell to 6.74% on Friday. Today, the yields will probably stay stable, with the benchmark bond yield likely trading at 6.71-6.77%. * Last week, the 10-year corporate bond yields fell somewhat following a steep drop in benchmark government bond yields. Due to month-end redemptions from debt mutual fund schemes, yields for papers up to three years increased by 3-4 basis points. This week, the yields will mirror the government bond yield movements. * The interbank call money rate fell below RBI's standing deposit facility rate of 6.25% on Saturday due to low funds demand from banks. The call money market volume was minimal since most banks had met their weekend funding obligations by Friday. The one-day call money rate may open higher than RBI's repo rate of 6.50% today due to banks' early demand to meet reserve requirements but ease later in the day due to adequate liquidity. Read more: https://lnkd.in/gyCEgBRe #Harmoney #HarmoneyNewsletter #MarketTrends

𝐃𝐚𝐢𝐥𝐲 𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐧𝐚𝐩𝐬𝐡𝐨𝐭: Key Financial Insights With our daily financial report, stay on top of the latest market movements Here’s what you need to know today: News S&P retains India's growth forecast at 6.8%, expects RBI to cut rates in Oct Govt working to reduce extent of GDP revisions Fortifying fundamentals key to navigating global uncertainties: RBI Guv •          𝐆𝐨𝐯𝐭 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐘𝐢𝐞𝐥𝐝𝐬: Track daily changes in interest rates. •          𝐂𝐃 & 𝐂𝐏 𝐘𝐢𝐞𝐥𝐝𝐬: Stay updated on short-term investment rates. •          𝐓-𝐁𝐢𝐥𝐥 𝐘𝐢𝐞𝐥𝐝𝐬: Insights on short-term borrowing costs. •          𝐅𝐨𝐫𝐞𝐱 𝐌𝐚𝐫𝐤𝐞𝐭: Monitor major currency movements. •          𝐂𝐨𝐦𝐦𝐨𝐝𝐢𝐭𝐲 𝐏𝐫𝐢𝐜𝐞𝐬: Daily changes in Brent Crude, Gold, and Silver •          𝐁𝐨𝐧𝐝 𝐘𝐢𝐞𝐥𝐝𝐬 & 𝐒𝐩𝐫𝐞𝐚𝐝𝐬: Analyze credit risk and opportunities. •          𝐅𝐈𝐈 𝐅𝐥𝐨𝐰𝐬: Gauge market sentiment and foreign investments. 𝑨𝒓𝒆𝒕𝒆 𝑹𝒆𝒔𝒆𝒂𝒓𝒄𝒉 𝑫𝒆𝒔𝒌 – 022 4043 9000 To know the details of today, please read the attached report. #s&p #marketupdate #rbi #debtnews #tbills #forexnews #cp #cd

Financial conditions in India remained favourable in February as a slimmer budget deficit helped boost investor confidence and foreign investors stepped up buying government securities. CRISIL’s Financial Conditions Index (FCI) stood at 0.6 in February, slightly better than January’s 0.5.   What factors supported financial conditions in February? Find out in the latest #CRISILPerspective. Dharmakirti Joshi | Dipti Salétore - Deshpande | Pankhuri Tandon | Sharvari Rajadhyaksha

Bond market recap: quick highlights from last week and the week ahead. • On Friday, the 5-year benchmark bond yields fell to a year low as new draft guidelines for the Basel III framework's liquidity coverage requirement drove robust demand for short to medium-term government bonds. The 10-year benchmark bond yield is expected to range within 6.93-7% after falling 2 basis points last week as traders liquidated their bond holdings for a profit. • Yields for short to medium-term corporate bonds fell by 5 basis points following the decline in government bond yields last week. Today, the yields are expected to open stable with the market's direction determined by the government bond yields and U. S. Treasury yields. Due to a shortage of primary market bond supply, volumes in the secondary market are expected to increase this week. • Last week, the call money rate fell drastically below RBI's standing deposit facility rate of 6.25% as demand for funds decreased and the liquidity surplus increased. Today, the one-day call money rate is expected to open at 6.5% as bank demand for funds increases. However, due to excess liquidity, interest rates may fall this week. Read more at: https://lnkd.in/dVyrgEW3 #Harmoney #HarmoneyNewsletter #MarketTrends

Adjusted Risk-Free Rate While the 10-year bond yield is often considered a benchmark for risk-free investments, it is not entirely risk-free. However, when valuing companies or calculating the cost of equity, a truly risk-free rate is essential. To address this, we adjust the bond yield using rating-based Credit Default Swap (CDS) spreads to arrive at an adjusted risk-free rate. Below is the data reflecting the adjusted rates, sourced from the Damodaran Online website and calculated as of November 21, 2024. I hope this insight adds value to your understanding of financial valuation! Follow Prajjawal Verma for more... Repost if you like it... #valuation #investmentbanking #linkedin #india #economy

RBI has maintained key rates at previous levels in the latest monetary policy. In my opinion, RBI has been too cautious historically, focusing more on inflation control than growth. With ~100 lakh people joining workforce every year, growth is critical, specially in MSME sector, which adds more jobs per Crore invested. Two of the MPC members voted for the rate reduction, while four voted for maintaining the rates at the same level. Hope these numbers reverse soon. #rbi #centralbanking #inflation #monetarypolicy

Stay informed with our daily financial report, providing you with the latest market movements: 𝐍𝐞𝐰𝐬 - • GST mop-up rises 8% in June, slowest rate in about 3 years • FY25 monetisation target to be raised to Rs 2 trillion • Birla MF expects debt investors to benefit from India’s inclusion in the   global index 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐲 𝐘𝐢𝐞𝐥𝐝𝐬: Track daily changes in interest rates. 𝐂𝐃 & 𝐂𝐏 𝐘𝐢𝐞𝐥𝐝𝐬: Stay updated on short-term investment rates. 𝐓-𝐁𝐢𝐥𝐥 𝐘𝐢𝐞𝐥𝐝𝐬: Gain insights on short-term borrowing costs. 𝐅𝐨𝐫𝐞𝐱 𝐌𝐚𝐫𝐤𝐞𝐭: Monitor major currency movements. 𝐂𝐨𝐦𝐦𝐨𝐝𝐢𝐭𝐲 𝐏𝐫𝐢𝐜𝐞𝐬: Daily updates on Brent Crude, Gold, and Silver. 𝐁𝐨𝐧𝐝 𝐘𝐢𝐞𝐥𝐝𝐬 & 𝐒𝐩𝐫𝐞𝐚𝐝𝐬: Analyze credit risk and opportunities. 𝐅𝐈𝐈 𝐅𝐥𝐨𝐰𝐬: Gauge market sentiment and foreign investments. For detailed information on today's market, please read the attached report. #commodityprices #forexmarket #marketsnapshots #bondyields #gst #birlamutualfund #investmentnews #rbi

📈 Exciting News in the Financial Markets! 📊 Bonds rally as RBI pays record dividend to govt 💰💼 #financialmarkets #bonds #RBI #dividend The recent announcement of the Reserve Bank of India (RBI) paying a record-breaking dividend to the government has sparked a significant rally in the bond markets. This move is indicative of the robust financial health of the RBI and bodes well for the overall economy. The substantial dividend payout signifies the strong performance of the RBI and its ability to generate surplus capital. It also illustrates the central bank's commitment to supporting the government's fiscal goals and stabilizing the financial system. This development has undoubtedly captured the attention of investors and market participants, leading to renewed confidence in the country's financial landscape. It further reinforces the notion of a dependable and resilient monetary authority. The impact of this news on the bond markets has been profound, as investor optimism has resulted in a surge in bond prices and a subsequent decline in yields. This trend reflects the favorable sentiment towards Indian fixed income securities and underscores the attractiveness of the bond market for both domestic and international investors. As we navigate through the dynamic landscape of financial markets, it's essential to stay informed and capitalize on opportunities that arise from such significant developments. The latest rally in bonds following the RBI's record dividend payment serves as a testament to the potential for growth and stability in India's financial sector. Let's continue to monitor these exciting developments and leverage them to make informed investment decisions. Stay tuned for further insights into the evolving financial landscape! #financialmarkets #RBI #dividend #bondrally #economy Your thoughts on this remarkable turn of events? Let's keep the discussion going! 🌐 Note: AI-powered post. May contain errors.