Halister News

(Bloomberg) -- Short-end India govt bond valuations are attractive, even if the RBI maintains a stable monetary policy regime and does not lower interest rates further, Standard Chartered analysts including Anubhuti Sahay and Nagaraj Kulkarni wrote in a report.

• StanChart holding on to long 6.84% 2022 govt bond recommendation
  • Target 6.40% with stop loss at 6.95%; yield currently up 1bp to 6.69%
• Doesn’t see SLR reduction as negative for govt bonds because private-sector credit growth remains subdued
• Market expectations on INR have swung from being too positive a few months back to being too negative currently, even as fundamentals have remained relatively well-balanced, analysts wrote in note dated Oct. 4
  • Keep short-term neutral weighting on INR; maintain USD/INR forecast at 64.50 for end-2017 and 66 for end-2018
  • USD/INR will continue to trade in a range; INR carry will remain attractive
• USD/INR little changed at 65.0325 after sliding 0.8% on Wednesday following RBI’s rate decision

To contact the reporter on this story: Subhadip Sircar in Mumbai at ssircar3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Shikhar Balwani

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS, click on Display & Edit, then Set Alert Delivery

UPGRADES

• Alcobrew Distilleries
  • Long-term bank facilities raised to BBB from BBB- at Crisil
  • Cites increase in scale of operations
• Blue Circle Organics
  • LT bank facilities raised to BBB- from BB at Care
  • Cites significant growth in scale of operations
• GHCL
  • LT bank facilities raised to A from A- at Care
  • Cites healthy operating performance of soda ash division
• Mercator Petroleum, Mercator Oil and Gas
  • LT bank facilities raised to BBB+(SO) from BBB(SO) at Care
  • Cites positive impact on capital structure of guarantor Mercator
• Precision Automation
  • LT bank facilities raised to A+ from A- at Care
  • Cites significant improvement in capital structure, debt coverage indicators
• Tata Power Renewable Energy
  • LT bank facilities raised to AA- from A at Care
  • Cites strong and steady cash flow generation, comfortable debt coverage indicators

DOWNGRADE

• Reliance Infrastructure
  • Bank facilities, NCDs cut to A from A+ at India Ratings
  • Cites delay in fundraising, high leverage

(Bloomberg) -- Bund futures (RX1) technical levels in focus.

• Daily Trend Bias: Neutral
• Comment: Wednesday’s strong intraday rally failed to sustain and early session enthusiasm quickly evaporated; with this as a backdrop, Thursday risks are pointing lower, with the gap up fueled by Catalonia uncertainty now closed; MACD has remained sub-zero during the latest rebound phase
  • Resistance: 161.42 (pivot); 161.67; 161.82
  • Support: 161.16-10 (gap); 161.01; 160.76-65
• NOTE: Roll-adjusted by difference in GFUT
• NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

To contact the reporter on this story: Sejul Gokal in London at sgokal1@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Neil Chatterjee

(Bloomberg) -- Thursday’s increase in Tokyo interbank offered rate may have been driven by changes in the rates that banks use for calculating the benchmark, according to Kenji Sato, a manager at Central Tanshi Co., a money-market dealer and broker.

• It doesn’t look like the rise in Tibor was caused by any change in the macro environment: Sato
  • Since the reform in July on how banks provide reference rates, Tibor has become more volatile, but it’s hard to pin down the exact reason
• NOTE: Onshore 3-month Tibor rose for first time since 2012 on Thursday, while offshore Tibor had first increase since July 31
• NOTE: Banks should refer to the following data when submitting rates for Tibor, according to the website of JBA Tibor Administration:
  • Observable unsecured call market
  • Observable certificates of deposit
  • Short-dated govt bonds, general-collateral repo market and overnight-index swaps
  • Expert judgment

To contact the reporters on this story: Chikako Mogi in Tokyo at cmogi@bloomberg.net; Masaki Kondo in Singapore at mkondo3@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Nicholas Reynolds