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While index-tracking flows are set to kick in from June, many active investors had placed their bets ahead of time, which helped India’s benchmark 10-year yield drop to the lowest in nine months in March
The borrowing is lower as “the government may spend less as we are in election season and the code of conduct is in place,” said Debendra Dash, a trader at AU Small Finance Bank. The borrowing plan accounts for 53% of its full-year target of Rs 14.13 trillion, lower than the 55%-60% the government typically borrows in the first half.
Will the RBI liquidity window turn small banks big? SECTIONS Share Synopsis According to industry captains, the new facility would help them to get about 1-1.5% positive carry on the borrowed fund, even after investing the same amount into government securities as mandated by the central bank. Agencies The banking system including small finance banks is sitting on cash surplus of Rs 7.12 lakh crore. Small-finance banks are likely to turn more competitive with the latest Rs 10,000-crore support from the Reserve Bank of India (RBI) as they would get such funds at 4% for three years - a rate sig...
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 buy almost the entire stock of the new 5-year benchmark paper at 5.63 per cent.
Surprise demand at India bond sale spurs speculation of RBI hand In a bid to clean up election funding, the government had in January introduced electoral bonds that can be bought from specified branches of State Bank of India and used to donate money to political parties. Photo: iStockphotoPremium 2 min read . Updated: 11 Feb 2021, 06:36 PM IST Bloomberg The benchmark 10-year bond was sold at 5.9726% cutoff yield. The 2025 bond saw a cutoff yield of 5.5410%, lower than the estimated 5.60%. The RBI accepted ₹2,000 crore ($275 million) more in each bond than the total ₹22,000 crore it ...