Bond Market Review

Gsec yields eased yesterday amid gas price and

fuel reforms in the form of deregulation of diesel
prices, leading to expectation of reduced subsidy
burden and lower fiscal deficit.
Intraday, RBI announced the overnight reverse
repo auction for notified amount of INR 100
billion, in which no offers were received.

US Treasuries remained supported on concerns

over weak global economic growth, raising
speculation of delayed interest rate increases by
Fed.
INR opened strong on dollar selling amidst oil and
gas reforms announced by the government.
Market sentiment also remained supported
tracking the gains in the domestic equity market.
10yr benchmark opened higher by 5p and INR
opened stronger by 5p this morning.

21-Oct-14

CBLO
3M Tbill
1Y Tbill
10Y Gsec
Gold/10g
INR

Close
8.36
8.46
8.5
8.36
27246
61.44

3m CD
1Y CD
3m CP
1Y CP
5Y AAA
10Y AAA

Close
8.55
8.93
8.89
9.38
8.95
9.07

Change
-5
-1
0
2
-4
0

Rs Bn
Total Liquidity Support*
MSF
FII Net Purchase (NSE)

Amount
-798.89
-31.2
11.17

Rate

10Y UST
Brent Crude $/barrel
Gold $/ounce
Dollar Index

Close
2.19
85.40
1246.93
84.95

Change
0
-1
8.6
-0.2

%
Credit Offtake
Deposits
M3

Change
198
0
0
-3
-13
-0.40
Spread

36
53

Ann Growth
10.95
13.05
12.60

All levels in %, bps for change and spread

* Includes support provided through various overnight and term repo facilities

From the Fixed Income Desk

R. Sivakumar
Devang Shah
Kedar Karnik
Rahul Vekaria

Axis Asset Management Company

Axis House, First Floor, C-2, Wadia International Centre,
Pandurang Bhudkar Marg, Worli,
Mumbai - 400 025, India

Disclaimer: This is only an update on the markets in India and must not be construed as investment/financial advice. The AMC does not
guarantee the accuracy, completeness or fairness of the information contained herein. This update contains information available in the public
domain or developed through analysis by the AMC. The AMC, its Directors or representatives shall not be liable for any damages including loss
of profits that may arise from use of information contained herein.
Statutory Details: Axis Mutual Fund has been established as a Trust under the Indian Trusts Act, 1882, sponsored by Axis Bank Ltd. (liability
restricted to Rs. 1 Lakh). Axis Mutual Fund Trustee Limited, a company incorporated under the Companies Act, 1956, with a limited liability is the
Trustee to the Mutual Fund. Axis Asset Management Company Limited, a company incorporated under the Companies Act, 1956, with a limited
liability is the Investment Manager to the Mutual Fund.
Risk Factors: All Mutual funds and securities investments are subject to market risks and there is no guarantee that the investment objective of
any scheme that maybe launched by the Asset Management Company(AMC) in future will be achieved. The NAV of the units issued by the AMC
under any of the schemes that maybe launched by the Mutual Fund in future can go up or down depending on various factors and forces
affecting securities markets. Past performance of the Sponsor does not indicate the future performance of any scheme that maybe launched by
the mutual fund. The AMC has no prior experience in managing mutual fund schemes. Axis Bank Limited is not liable or responsible for any loss
or shortfall resulting from the operation of any of the mutual fund schemes launched by the AMC in future. Mutual Fund Investments are
subject to market risks, read all scheme related documents carefully.