Good Morning !! Resilience of the mind is crucial to Success ....
A very quick recap of last week:
The US Government averted a shutdown by passing a stop gap funding bill to fund the Govt until Nov 17, 23. UST curve bear steepened with US2s10s steepening 20 bps on the week from -64 to -44. USD index continued the move higher to 106.84 levels last seen in Dec 2022. The implied FFR market pricing gyrated between 11 - 13 bps until the Dec 23 policy. For Dec 2024, the pricing moved between 4.60% - 4.76%. US PCE for Aug rose 3.50% yoy. PCE price index rose 0.40% mom ( prior 0.20% mom) and core PCE prices rose 0.10% mom ( prior 0.20%). Core PCE prices reflected an increase of 0.2% in spending on services and a decrease of 0.2% in spending on goods. Resilience of the US economy and labor market was seen in the durable goods orders data and the Initial jobless claims. The housing data, however, exhibited weakness as high interest rate weigh on the sector.
Last week, JP Morgan announced the inclusion of India FAR securities to GBI-EM index w.e.f 28 Jun 24 until March 2025 in increments of 1%. The inclusion is estimated to bring in additional flows to the tune of $ 20 bn. The inclusion paves the way for inclusion in other bond indices, esp the Bloomberg Barclays Aggregate Index. However, FTSE Russell, in its recent review on 28 Sep, did not announce India inclusion. The Q1 Current account deficit widened to - 9.20 bn USD. FPI inflows were to the tune of 15 bn USDs and the BoP surplus amounted to 24.45 bn USD.
Snapshot of India Rates
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