Highlights of the policy RBI Governor, Dr D V Subbarao announced the first quarterly review of monetary policy today. The measures taken were quite on the expected lines (Read our article on monetary policy expectations). Benchmark Repo rates hiked by 25 bps to 5.75% with immediate effect. Benchmark Reverse Repo rates hiked by 50 [...]
Posts Tagged ‘liquidity’
Bond market/ G-Sec update
July 11th, 2010 
Praveen Bajaj Yields on Government securities rose to the highest level in two weeks following the mid-term 25 bps rate hike by RBI on last Friday. Benchmark 10 year bond, 7.80% 2020 security rose 8 bps to 7.64% from 7.56% close of last week. As expected, yields opened stronger on Monday, but later were dragged down due [...]
RBI raises rates again
July 2nd, 2010 Praveen Bajaj As predicted by our analyst Rahul Sonthalia (click here to read) and myself (click here to read) in our earlier articles, RBI has raised the policy rates almost a month before the scheduled 1st quarterly review of monetary policy due at the end of July. In an after market hour announcement today, RBI raised the repo [...]
Posted in Economy 
Tags: bond market, equity, inflation, LAF, liquidity, monetary policy, repo rate, reverse repo rate, WPI, Yields 
2 Comments »Govt Securities update:June 26, 2010
June 27th, 2010 Praveen Bajaj For the first 4 days of the week, government securities moved in a range. Benchmark 10 year bond, 7.80% 2020 bond moved in between 7.55% and 7.61%. Results of buyback of securities, in which RBI accepted amount of Rs 806 cr against a notified amount of Rs 10,000 cr. This led to a slight increase [...]
Posted in Economy Tags: 7.80% 2020, benchmark 10 year bond, inflation, liquidity, Yields No Comments »Weekly G-Sec update:June19, 2010
June 20th, 2010 Praveen Bajaj High inflation released on Monday set the tone for the week. As expected, with the release of inflation above 10% mark, yields on benchmark 7.80% 2020 bond rose 8 bps to close at 7.69% on Monday under fears that RBI might be forced to raise rates to tame inflation. Rates also rose after comments [...]
Posted in Economy Tags: 7.80% 2020, benchmark 10 year bond, inflation, liquidity, rbi, repo, Yields No Comments »Weekly G-Sec update:June 12, 2010
June 13th, 2010 Praveen Bajaj After trading in a range last week, yields on benchmark 10 year bond, 7.80% 2020 bond steadily rose 9 bps for the week to close at 7.61% for the week. Surge in yields was driven by tight liquidity conditions. On all days of the week, we saw Repo window being active. Daily average of the combined [...]
Posted in Economy Tags: benchmark 10 year bond, inflation, liquidity, repo, WPI, Yields 2 Comments »Trading Nifty as global liquidity dries up…
June 11th, 2010 Praveen Bajaj This Could Evaporate Liquidity From Markets… Yesterday the European Central Bank (ECB) announced the key rates and as the streets expected, they were unchanged. There was no positive out of the press conference from Trichet, the only thing he did was subtly pleading to the world that “EURO is a stable currency’ and reiterated again the same [...]
Weekly G Sec update May 29, 2010
May 31st, 2010 Praveen Bajaj Benchmark 7.8% 2020 bond lost considerable ground in the week due to tightening liquidity conditions arising from the 3G spectrum payment and direction of US treasuries. Yield for the said bond closed at 7.52% on Friday, up 14 bps from close of 7.38% last week. Bonds were bearish throughout the week tracking weak US Treasuries [...]
Weekly G-Sec update May 22, 2010
May 24th, 2010 Praveen Bajaj Developments on foreign front push yields down Yields on benchmark 10 year bond 7.80% 2020 bond closed the week at 7.37, 12 bps down from last week’s close of 7.49. In the initial part of the week, yields rose 4 bps as RBI sold Rs 6,000 cr of cash management bills on Tuesday and announcement of issue [...]
RBI Monetary Policy 2010
April 19th, 2010 Praveen Bajaj Monetary Policy Predictions Finally the D-day is here..the day when RBI Governor Dr.D Subbarao will announce the monetary policy putting (or rather saying probably putting) an end to the much speculated move of RBI..will it hike the rates, which rate will be hiked and how much..before RBI announces the rates here is MoneyBol’s take on [...]
Posted in Economy Tags: crr, D Subbarao, iip, inflation, liquidity, monetary policy, PMEAC, Rangarajan, rbi, repo, reverse repo, WPI No Comments »