Domestic indices ended with significant losses, posting their fourth straight weekly decline. Global stocks were also under pressure due to the fast-spreading coronavirus, which has killed several thousands and disrupted supply chains across the world. In the week ended 13 March 2020, the Sensex fell 3473.14 points or 9.24% to settle at 34103.48. The Nifty 50 index slipped 1034.25 points or 9.41% to settle at 9955.20.
Due to fear of corona virus impact on world GDP equity witnessed worldwide selling pressure, which lead to the yield on 10-year benchmark paper very volatile and close at 6.32% compared with 6.18% the previous week.
The low yield on the 10-year Treasury is a sign that the investors are very concerned about future growth in the economy. When people are worried about everything else, they run to Treasuries because they know they are going to get paid back.
10-year U.S. Treasury yield remained highly volatile but this week its yield improved to 0.983% only in last week it hit its lifetime low but this week witnessed some outflow due to equity market witnessing massive fall and giving an opportunity to buy equity at attractive valuations.
FII/FPI IN DEBT MARKET
|INDEX||13th Mar||On 6th Mar||%Chg.|
|S&P BSE SENSEX||34103.48||37576.62||-9.24|
|Policy Repo Rate||5.15%|
|Reverse Repo Rate||4.90%|
|GDP Latest Qtr||4.7%|
|Rate||13th Mar||On 6th Mar||%Chg.|
|Foreign Exchange Reserves (13/Mar. 2020)||$487.24B||$481.54B|
|WPI Inflation YoY (Jan)||3.10%||2.59%|
|Inflation Rate YoY (Feb)||6.58%||7.59%|
|10 yr bond yield||6.322%||6.180%|
|3yr bond yield||5.733%||5.418%|
|1yr bond yield||5.048%||4.962%|
|US 10 yr benchmark yield||0.983%||0.773%|
|07.37 GS 2023||16/04/2023||5.69%||5.49%|
|07.32 GS 2024||28/01/2024||5.93%||5.59%|
|07.17 GS 2028||08/01/2028||6.66%||6.4%|
|INSTRUMENTS||13th Mar||6th Mar||%Chg.|
DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
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