Bond market/ G-Sec update
Jul 3rd
After a hefty 8 bps points jump on Friday of last week due to decision to free up fuel price (read MB update here), G-sec markets opened the week on a strong note. Announcement by RBI that the borrowing amount for the week will be at the reduced levels kept the sentiments up. Yields on benchmark [...]
RBI raises rates again
Jul 2nd
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 and [...]
Govt Securities update:June 26, 2010
Jun 27th
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 in [...]
India to move to market movement based oil prices
Jun 25th
The Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, have decided in the meeting just now that India oil prices such as petrol and diesel prices will be determined by market.
Details of the same, as to how this exactly will be carried out will be disclosed later and we will update you [...]
Weekly G-Sec update:June19, 2010
Jun 20th
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 from [...]
Weekly G-Sec update:June 12, 2010
Jun 13th
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 amounts on [...]
Weekly G-Sec update May 22, 2010
May 24th
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 of [...]