Page 7 - Acquisition Programme News Today

Need to do more to rein in yields: MPC SECTIONS Last Updated: Apr 23, 2021, 07:05 AM IST Share Synopsis A debate about the efficacy of the central bank’s guidance appears to be intensifying within the MPC with Governor Shaktikanta Das hesitant to commit himself on a time-bound guidance, while Prof. Jayant Varma declaring it to be ineffective and calling for action by the central bank. The conduct of monetary policy could be smooth and is firmly in control even if external factors such as risi...

Resurgence of COVID-19 dominates Monetary Policy Committee deliberations SECTIONS Share Synopsis A debate about the efficacy of the central bank’s guidance appears to be intensifying within the MPC with Governor Shaktikanta Das hesitant to commit himself on a time-bound guidance while Prof. Jayant Varma declaring it to be ineffective and calling for action by the central bank. Getty Images The resurgence of Covid virus infections dominated the Monetary Policy Committee deliberations with memb...

April 20, 2021 They fear that a rise in interest rates could adversely impact prices of long-tenor securities Market participants, especially banks, in the Government Securities (G-Sec) market, seem to be turning averse to the conversion of short-tenor securitiesinto long-tenor securities, due to fears that a rise in interest rates could adversely impact prices of the latter. They are avoiding duration risk (the longer the maturity of a bond, the more sensitive it is to changes in interest rate...

Softbank Group to invest $450 million in Swiggy at $5.5 billion value SoftBank Group Corp. is investing in Swiggy at a $5.5 billion valuation, the second funding for the Indian food delivery startup in as many weeks as capital floods the world’s fastest growing internet arena. The $450 million funding came from Masayoshi Son’s Vision Fund 2, a person familiar with the matter said. The financing awaits approval from Indian antitrust regulators, the person added, asking not to be identified t...

G-Sec prices on the rise April 16, 2021 Prices of Government Securities (G-Secs) rose on Friday after the previous day’s sharp fall as the RBI did not devolve the 10-year benchmark G-Sec on primary dealers despite rejecting all bids for it at the auction. The price of the 10-year benchmark (carrying 5.85 per cent coupon rate) ended up 27 paise at ₹98.275 (previous close ₹98.01), with its yield thawing about 4 basis points to 6.0885 per cent (6.1256 per cent). Rejects all bids Of the three...

Government Securities prices tumble April 15, 2021   Government Securities (G-Sec) prices tumbled on Thursday as the Reserve Bank of India (RBI) purchased some of the securities under its G-Sec Acquisition Programme (G-SAP) at lower than the previous closing price. Yield up 11 basis points The price of the 10-year benchmark (carrying 5.85 per cent coupon), which was part of the open market purchase of G-Secs under G-SAP, plummeted about 82 paise to close at ₹98.01 (previous close ₹98.825),...

G-secs worth Rs 11,000 crore remain unsold in first auction of FY22 Top Searches G-secs worth Rs 11,000 crore remain unsold in first auction of FY22 TNN / Updated: Apr 10, 2021, 11:43 IST FacebookTwitterLinkedinEMail (Representative image) MUMBAI: Government securities (G-secs) worth nearly Rs 11,000 crore remained unsold in the first gilt auction of fiscal 2022. This indicates a revival of the tug of war between traders, who want higher yields, and the central bank which wants the opposite. Si...

Dollar weakens as euro recovers Rupee tumbles after the Reserve Bank of India maintains status-quo on repo rates The US dollar remained under pressure all through the week as the Euro extended its recovery. It was the Indian rupee that stole the show with heightened and unexpected volatility. The rupee tumbled below 74 last week after the Reserve Bank of India’s monetary policy outcome on Wednesday. The currency fell to a low of 74.94 and closed at 74.74, down 2.2 per cent for the week. Polic...

Yields on the benchmark 10-year bond on Friday fell below 6 per cent for the first time in two months as expectations swirled around the G-Sec Acquisition Programme (G-SAP 1.0) of the Reserve Bank of India (RBI) which kicks off next Thursday. The programme is meant to stabilise yields that will enable the government to carry out its gargantuan Rs 12-lakh-crore borrowing programme for the year without disrupting the fund-raising plans of other companies. In the meantime, the RBI on Friday undert...

The 10-year bond yield fell below 6 per cent in intra-day trade on Friday after the Reserve Bank of India (RBI) committed to buying at least Rs 1 trillion of bonds from the secondary market. In the morning trade, the yield dropped to 5.97 per cent, but it climbed up to close at 6.02 per cent once it was found that the central bank had refused to sell a new 5-year benchmark paper at the rate demanded by the market. Instead, the RBI forced the primary dealers, or underwrites of the auction, to ...