Asian markets in negative zone

China’s Shanghai Composite is currently trading 0.23% lower at 2,985.91 points.South Korea’s Kospi index ​is ​at 2,985.91 points (down 0.59%) and Indonesia’s Jakarta Composite ​is ​at 4,788.04 points (down 0.51%).

Asian stock markets are trading in negative zone on Wednesday after US stock indices ended lower and oil prices lost ground. Crude oil futures traded in New York slipped on Tuesday on the back of renewed fears of a severe global glut ahead of weekly inventory data. Brent oil futures dropped 86 cents, or 1.9%, to finish at US$44.97 a barrel on London’s ICE exchange.

The US dollar, however, fell against most other major currencies, as the yen extended its recent gains against the greenback.

The Japanese stock market is closed until Friday for the Golden Week holidays.

China’s Shanghai Composite is currently trading 0.23% lower at 2,985.91 points.

South Korea’s Kospi index ​is ​at 2,985.91 points (down 0.59%) and Indonesia’s Jakarta Composite ​is ​at 4,788.04 points (down 0.51%).

Taiwan’s Taiex at 8,210.93 points (down 1.01%), Singapore’s Straits Times at 2,776.42 points (down 1.25%), Hong Kong’s Hang Seng at 20,426.66 points (down 1.23%), Thailand’s SET Composite at 1,389.53 points (down 0.60%) and Singapore Nifty at 7,736.50 points (down 0.58%).

European stocks slumped, while commodity prices as well as commodity currencies declined following a surprise interest-rate cut by the Australian central bank.

Bond yields edge lower tailing lower crude prices and US yields

Bond yields edged lower as fall in global crude oil prices and U.S. yields, supported sentiments. However, further fall of yields is unlikely ahead of GDP data on Friday and RBI policy review on Tuesday. Q2 GDP data is estimated to have grown at 5 per cent or even lower in the second quarter of 2014-15, sharply lower than the 5.7 per cent witnessed in the first quarter. On the global front U.S. Treasuries yields fell on Tuesday, with long-dated ones hitting their lowest in over a month, after a strong auction of five-year notes and a single major bid for long-dated U.S. debt. Meanwhile, Oil prices dropped early on Wednesday as Asia's top economies showed signs of weakness, but hopes for output cuts by producer club OPEC curbed losses. Back home, the yields on new 10 year Government Stock 2023 was trading 1 basis point lower at 8.15% from its previous close of 8.16% on Tuesday. The benchmark five-year interest rate swaps were trading 1 basis point lower at 7.27% from its previous close of 7.28% on Tuesday. The Reserve Bank of India has announced the auction of 91 and 364 days Government of India Treasury Bills for notified amount of Rs 8,000 crore and Rs 6,000 crore respectively. The auction was conducted on November 27, 2014 using 'Multiple Price Auction' method. The allocation to the non-competitive bidders will be outside the notified amount at the discretion of the Bank. The Government of India have announced the sale (re-issue) of the Government Stock through auctions to be held on November 28, 2014, including (i) 8.27 per cent GS 2020 for a notified amount of Rs 3000 crore (ii) 8.40 per cent GS 2024 for a notified amount of Rs 6000 crore and (iii) 9.20 per cent GS 2030 for a notified amount of Rs 2000 crore and (iv) New 30 Years GS for a notified amount of Rs 3000 crore.

NSE Corporate Bonds Trading report

As per the NSE data, LIC HOUSING FINANCE LIMITED 9.38 NCD 06NV15 FVRS10LAC LOA UPTO 06MR13, currently trading at Rs 100.5275 with Last Trade Yield (YTM) Annualized of 8.7653% was in maximum demand, followed by POWER FINANCE CORPORATION LTD. SR-121 A 8.9 BD 21OT17 FVRS10LAC, trading at Rs 100.8719 with YTM Annualized of 8.5300%, HOUSING DEVELOPMENT FINANCE CORPORATION LTD SR-M 018 9.34 NCD 28AG24 FVRS10LAC, trading at Rs 103.3244 with YTM Annualized of 8.8001% and LIC HOUSING FINANCE LIMITED 9.7624 NCD 08MR19 FVRS10LAC LOA UPTO 09JU14, trading at Rs 102.8573 at a YTM of 8.9000%.

Bond yields tread water on Friday; caution ahead of Rs 14,000 crore debt sale weighs

Bond yields were treading water on Friday in account of prevailing cautiousness ahead of central bank's monetary policy review on December 2, nevertheless the uptrend of yields is likely as traders could reduce their position ahead of Rs 14,000 crore debt sale later in the day. On the global front, U.S. Treasury debt prices inched higher on Thursday as investors sought the safety of government bonds amid concerns about global growth following weak manufacturing data from China and Europe. Meanwhile, brent crude briefly rose to $80 a barrel on Friday on speculation OPEC could agree to output cuts at its meeting next week, with strong U.S. economic data also bolstering oil prices. Back home, the yields on new benchmark 8.40%-2024 bonds was trading flat at Thursday’s close of 8.16%. The benchmark five-year interest rate swaps were trading 1 basis point higher at 7.36% from its previous close of 7.35% on Thursday. The Government of India announce the sale of Four dated securities for Rs 14,000 crore on November 21, 2014, including (i) 8.27% Government Stock 2020 for a notified amount of Rs 2000 crore, (ii) New 12 year Government Stock for a notified amount of Rs 6,000 crore, (iii) 8.24% Government Stock 2033 for a notified amount of Rs 3000 crore and (iv) 8.30% Government Stock 2040 for a notified amount of Rs 3000 crore respectively.

OTC trade data of government securities as on Nov 19

As per the OTC data of Nov 19, 8.40% GS 2024, maturing on 28-Jul-2024 was in maximum demand with 20 number of trades and total volume of Rs 820.00 crore, at last traded price of Rs 101.55 and last traded YTM of Rs 8.16. Followed it was,8.60% GS 2028, maturing on 02-Jun-2028 with 17 trades of total volume Rs 671.00 crore, at last traded price of 102.88 and last traded YTM of Rs 8.24.

Call rates in line with repo level in the first week of reporting cycle

Interbank call rates were trading higher at 8.00%/8.05% against Wednesday’s close of 7.50%/7.60%, more or less in with the repo level as banks continued to demand more for fulfilling their product cycle requirements, in order to avoid the volatility of rates going further. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 8881 crore through repo auction on November 19, 2014, while banks via LAF facility borrowed Rs 10914 crore through repo window and parked Rs 1915 crore through reverse repo auction on November 18, 2014. The overnight borrowing rates touched a high and low of 8.10% and 6.75% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.03% on Thursday and total volume stood at Rs 26810.17 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.98% on Thursday and total volume stood at Rs 39170.95 crore, so far. The indicative call rates which closed 7.50/7.60% on Wednesday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far.

NSE Corporate Bonds Trading report

As per the NSE data, HOUSING DEVELOPMENT FINANCE CORPORATION LTD SR-M 015 9.45 NCD 21AG19 FVRS10LAC, currently trading at Rs 102.4588 with Last Trade Yield (YTM) Annualized of 8.7700% was in maximum demand, followed by RURAL ELECTRIFICATION CORPORATION LIMITED SR-123 III OPT I 9.25 BD 25AG17 FVRS10LAC, trading at Rs 101.7894 with YTM Annualized of 8.4600%, L&T FINCORP LIMITED SR-C OPT 5 9.7 NCD 26AG16 FVRS25LAC, trading at Rs 100.7478 with YTM Annualized of 8.7165% and RURAL ELECTRIFICATION CORPORATION LIMITED SR-123 IV 8.97 BD 08SP16 FVRS10LAC, trading at Rs 100.8388 at a YTM of 8.4000%.

Call rates edge higher on Reporting Friday

Interbank call rates were trading higher at 8.00%/8.05% against Thursday’s close of 7.70%/7.80%, above the repo level on last trading session of reporting cycle, due to good demand from borrowing banks amid tight liquidity in the banking system. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 14307 crore through three days repo auction on November 14, 2014, while banks via LAF facility borrowed Rs 15688 crore through repo window and parked Rs 6818 crore through reverse repo auction on November 13, 2014. The overnight borrowing rates touched a high and low of 8.25% and 7.80% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.03% on Friday and total volume stood at Rs 53453.89 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 7.87% on Thursday and total volume stood at Rs 36177.00 crore, so far. The indicative call rates which closed 7.70%/7.80% on Thursday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far.

NSE Corporate Bonds Trading report

As per the NSE data, POWER FINANCE CORPORATION LTD. 9.81 BD 07OT18 FVRS10LAC LOA UPTO 06OT13, currently trading at Rs 103.5164 with Last Trade Yield (YTM) Annualized of 8.6900% was in maximum demand, followed by IDFC LIMITED SR-PP3/15 OPT II 8.9905 NCD 15JU15 FVRS10LAC, trading at Rs 100.1849 with YTM Annualized of 8.4296%, NTPC LIMITED SR-53 9.17 LOA 22SP24 FVRS10LAC, trading at Rs 103.7943 with YTM Annualized of 8.5700% and POWER FINANCE CORPORATION LTD. 8.27 BD 25JU16 FVRS10LAC LOA UPTO 19JN13, trading at Rs 99.3766 at a YTM of 8.6300%.

Call rates remain above repo level on Thursday

Interbank call rates were trading higher at 8.10%/8.15% against Wednesday’s close of 7.40%/7.50%, above the repo level on concerns over availability of funds due to a nationwide bank strike called on Wednesday. However, the rates are expected to ebb below repo level once banks resume their normal operations. The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 15688 crore through three days repo auction on November 13, 2014, while banks via LAF facility borrowed Rs 17849 crore through repo window and parked Rs 4289 crore through reverse repo auction on November 12, 2014. The overnight borrowing rates touched a high and low of 8.40% and 7.90% respectively. According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was at 8.09% on Thursday and total volume stood at Rs 26686.47 crore, so far. As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was at 8.15% on Thursday and total volume stood at Rs 49645.30 crore, so far. The indicative call rates which closed 7.40%/7.50% on Wednesday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered, so far.

Bond yields edge lower ahead of November CPI data

Bond yields were trading lower ahead of consumer price data due on Wednesday amidst hopes that lower rate of inflation would allow RBI to unveil early rate cuts. Nevertheless, further slide of yields was unlikely as state run bank’s strike weighed on demand for bonds. On the macro-front, besides November CPI data, October IIP data also is expected to be unveiled later in the day. While, the street widely expects consumer price index (CPI) to be at 6.46%, which is another new low for the index since it started in January 2012, it expects industrial output numbers (IIP) to be at 0.8%. Recently, however, RBI’s deputy governor HR Khan underscored that recent decline in inflation did not mean the decline was permanent. He also emphasized that though decline in crude oil prices and other commodities were beneficial to Indian economy, but policy makers just could not jump their guns until they were convinced the trend was firmly established. On the global front, U.S. Treasuries prices fell on Monday on the view that last Friday's rally was overextended, while traders also sold some U.S. government debt to brace for this week's $66 billion in new supply. Meanwhile, Brent crude fell towards $81 a barrel on Wednesday, holding just above a four-year low as concerns over a mounting oil glut outweighed geopolitical and supply disruption risks in Ukraine and Libya. Back home, the yields on new benchmark 8.40%-2024 bonds was trading 2 basis points lower at 8.17% from its previous close of 8.19% on Tuesday. The benchmark five-year interest rate swaps were trading 2 basis points lower at 7.39% from its previous close of 7.41% on Tuesday. The Reserve Bank of India has announced the auction of 364-day Government of India Treasury Bills for notified amount of Rs 6,000 crore and Rs 8,000 crore respectively. The auction will be conducted on November 12, 2014 using 'Multiple Price Auction' method. The Government of India announce the sale of Four dated securities for Rs 15,000 crore on November 14, 2014, which includes (i) 8.27% Government Stock 2020 for a notified amount of Rs 3000 crore, (ii) 8.40% Government Stock 2024 for a notified amount of Rs 7000 crore, (iii) 9.20% Government Stock 2030 for a notified amount of Rs 2,000 crore and lastly (iv) 9.23% Government Stock 2043 for a notified amount of Rs 3000 crore respectively.

NSE Corporate Bonds Trading report

As per the NSE data, POWER FINANCE CORPORATION LTD. SR-121 B 8.96 BD 21OT19 FVRS10LAC, currently trading at Rs 101.2021 with Last Trade Yield (YTM) Annualized of 8.6400% was in maximum demand, followed by RURAL ELECTRIFICATION CORPORATION LIMITED SR-125 9.04 BD 12OT19 FVRS10LAC, trading at Rs 101.6572 with YTM Annualized of 8.6000%, RURAL ELECTRIFICATION CORPORATION LIMITED SR-122 9.02 BD 18JU19 FVRS10LAC, trading at Rs 101.3932 with YTM Annualized of 8.6100% and HINDUSTAN PETROLEUM CORPORATION LIMITED 8.75 NCD 09NV15 FVRS10LAC LOA UPTO 31JN13, trading at Rs 100.4990 at a YTM of 8.2027%.

Rupee trades weak on increased dollar demand from importers

Indian rupee, after making a weak start, continue to depreciate against dollar on Thursday tailing negative local equities, weaker Asian counterparts and increased demand for the US currency from importers, which weighed on the sentiment of Indian currency. Besides, the dollar's strength against other currencies overseas put pressure on the rupee. On the global front, dollar held near a four-year high against a basket of major currencies on Friday, with its near-term fortunes hinging on whether U.S. jobs data will add to or temper optimism about the U.S. economy's outlook.

The partially convertible currency is currently trading at 61.52, weaker by 10 paise from its previous close of 61.42 on Wednesday. The currency has touched a high and low of 61.57 and 61.49 respectively.  The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 61.38 and for Euro stood at 76.98 on November 05, 2014. While, the RBI’s reference rate for the Yen stood at 57.36, the reference rate for the Great Britain Pound (GBP) stood at 98.0043. The reference rates are based on 12 noon rates of a few select banks in Mumbai.

Forex reserves stood at $315.697 billion for the week ended September 12, 2014

Forex reserves stood at $315.697 billion for the week ended September 12, 2014

Sep 20,2014   10:56 Hrs IST

According to the latest press release from the Reserve Bank of India (RBI), the country’s forex reserves decreased by $1615.40 million to $315.697 billion during the week ended September 12, 2014. The decrease in valuation of Foreign Currency Assets in the IMF pulled the forex kitty lower during the reporting week. Valuation of foreign currency assets decreased by $1599.60 million in the week and stood at $288.764 billion, while the value of gold in the reserves remained unchanged to $20.933 billion during the week. SDRs’ (Special Drawing Rights) valuation decreased by $11.40 million and stood at $4.333 billion in the week. This valuation is inclusive of SDR 3,082.5 million (equivalent to $4,883 million) allocated under general allocation and SDR 214.6 million (equivalent to $340 million) allocated under special allocation by International Monetary Fund (IMF) done on August 28, 2009 and September 9, 2009, respectively. The country’s reserve position in the IMF further witnessed a drop of $4.40 million during the week ended September 12, 2014 to $1.666 billion. Reserve position in the IMF, i.e., Reserve Tranche Position (RTP) which was shown as a memo item from May 23, 2003 to March 26, 2004 has been included in the reserves from the week ended April 2, 2004 in keeping with the international best practice.

Burger King, Tim Hortons merge to form fast-food giant

Burger King is buying Canada's Tim Hortons coffee-and-donuts chain in an $11.4 billion deal that raised concerns about another US company moving abroad for tax advantages. 

Burger King Worldwide denied that the deal announced Tuesday, which would create the world's third-largest fast-food company, was being undertaken for tax reasons. 

But the planned move of the "Home of the Whopper" headquarters from Florida to Canada, which could cut its corporate tax bill, sparked calls for boycotts from consumers and objections on Capitol Hill. 

The deal, backed by legendary investor Warren Buffett, would create a giant of the quick-service restaurant (QSR) industry with $23 billion in sales and more than 18,000 restaurants in 100 countries. 

That would propel the as-yet unnamed new company to number three worldwide in sales after McDonald's and Yum!, owner of Pizza Hut, Taco Bell and Kentucky Fried Chicken. 

The planned merger is the latest in a wave of controversial tax-inversion deals, in which a US company relocates its statutory headquarters outside the country to take advantage of lower tax rates. 

In the deal, Brazilian-controlled 3G Capital will convert its roughly 70 percent equity stake in Burger King to a 51 percent shareholding in the new company. 

China shares end lower, IPOs raise dilution concerns

China's stock indexes ended lower on Wednesday, on concerns that upcoming new listings will dilute market liquidity even as investors look to take profits from a rise in some large-cap shares. 

sentiment was dampened by profit-taking in some index heavyweight shares, as well as a sell-off in media stocks on the ChiNext board after a three-day rally. 

The Shanghai Composite Index finished down 0.2 per cent at 2,240.21 points, while the CSI300 of leading Shanghai and Shenzhen A-share listings fell 0.4 per cent to 2,366.14 points. 

Late on Tuesday, the Chinese Securities Regulatory Commission (CSRC) announced that 11 Chinese companies would launch initial public offerings (IPO), with subscriptions starting at the end of August. 

European shares extend rally; Maersk surges

European shares rose in early trading on Tuesday, adding to the previous session's rally, led by Moller-Maersk's sharp gains following forecast-beating results. 

Shares in the Danish shipping and oil group rose 5 per cent after it posted better-than-expected results, raised its full-year profit outlook and unveiled a $1 billion share buyback plan. 

At 0706 GMT, the FTS Eurofirst 300 index of top European shares was up 0.3 per cent at 1,343.43 points, extending the previous session's 1.2 per cent rise and tracking solid gains on Wall Street as investors' concerns over the Ukrainian crisis eased. 

Ukrainian government forces reported new successes overnight, building on a weekend breakthrough when troops raised the national flag in Luhansk, a city held by pro-Russian separatists since fighting began in April. 

China's yuan hits 4-1/2-month high

China's yuan firmed against the dollar for the third straight day on Wednesday, trading at its highest level since mid-March, despite the central bank setting a weaker guidance rate. 

The People's Bank of China set the midpoint rate at 6.1681 per dollar prior to market open, down 0.04 percent from the previous fix. The spot rate is currently allowed to trade 2 percent above or below the midpoint. 

The spot market opened at 6.1719 per dollar and was changing hands at 6.1690 by midday, 0.04 percent stronger from the previous close. 

The spot rate and the midpoint continued to converge, with the spot only 4 points above the midpoint fixing at midday, representing the closest level the two rates have been trading since the central bank widened the trading band to 2 percent in the mid-March. 

European shares fall for third day before US jobs data

European equity indexes fell for a third day on Friday, weighed by gloomy corporate outlooks and the prospect of US jobs data, which is expected to shed light on the chances of an early end to the Federal Reserve's ultra-easy monetary policy. 


While encouraging for the global economy at large, a strong US employment report would strengthen the case for an early interest rate hike by the Fed, whose monetary largesse has helped fuel a nearly 40 per cent rally in European equities over the past two years. 

At 0724 GMT, the pan-European FTSEurofirst 300 index was down 0.4 per cent at 1,344.22 points, falling for a third straight session. The euro zone Euro STOXX 50 index was down 0.3 per cent at 3,106.17 points 

The Euro STOXX 50 recorded its steepest monthly loss in over a year in July, falling 3.4 per cent amid concerns about a Fed rate hike in light of strong US GDP and labour costs data earlier this week, as well as geopolitical tensions in Ukraine and the Middle East. 

China Takes on Hitachi as Rare Earth Patent Ends

Some Chinese producers of rare-earth magnets are seeking to use this month’s expiry of a key patent held by Hitachi Metals Ltd. (5486) to expand exports of the micro magnets used in products from motors to smartphones.

The expiry of a 17-year-old patent that defines the structure of such magnets paves the way for previously blocked Chinese producers to sell to U.S. customers, said Sun Baoyu, chairman of Shenyang General Magnetic Co. It’s formed an alliance with six Chinese producers to promote their products and fight Hitachi over other patents, that the Japanese company says largely prevent rivals from making magnets.

“Hitachi’s whole patent package’s base is this ingredient patent,” said Li Weifeng, a Shanghai-based analyst with Everbright Securities Co. It is a “very basic” patent for the magnets, he said.

The end of the patent will pit the seven producers in the alliance and potentially others who try to tap into the market against Hitachi and eight Chinese companies that have paid for the right to make and ship the magnet. An increase in exporters of the magnets could cut prices of the product used in Apple Inc. (AAPL)’s iPhones and Toyota Motor Corp. (7203) hybrid-electric cars.

Hitachi holds more than 600 patents for rare-earth magnets globally, some of which it acquired after taking over Sumitomo Special Metals Co. in the 2000s, said spokesman Akio Minami