Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Caution ahead of budget day; yields remain range bound
Government securities
Yield rose marginally today, after hitting a seven week low on Tuesday as traders
booked profits, ahead of the Union Budget on Monday. Overall sentiment in the
market will remain cautious until clarity about the government borrowing for the
next fiscal is delivered through the budget. The weekly inflation data due on
Thursday also weighed. The ten year benchmark bond closed 2bps lower at
8.04%, touching an intraday low yield of 8.00%. The most liquid 8.13% 2022
bond closed 2bps higher at 8.11%.
Crude Oil prices have been surging over the past few days on concerns about on
worries that oil supplies might be hit if the crisis in the West Asian countries
persists. Rising crude prices has mounted pressure on the swap rates on worries
over inflation and the consequent action the central bank may take in order to rein
in prices. The 5 year swap closed at 8.09% while the one year swap ended at
7.48%.
Non-SLR market
Short term CD rates continued to edge higher due to the high supply from Banks.
One year CDs were dealt at 10.15% level while three month CDs were dealt at
10.08% - 10.10% level. SBBJ placed one year CD at 10.13% for a quantum of INR
1.75bn and six month CD for a quantum of INR 750mn at 10.10%. Axis Bank
placed INR 7bn of six month CD at 10.25% and INR 750mn of one year CD at
10.28%. IDBI Bank placed INR 3bn of three month CD at 10.10%.
Money markets
Bank’s demand for funds remained stable towards the end of the reporting
fortnight. The central bank injected INR 776bn in the system through the LAF
compared to INR 763bn on Tuesday. Until 20th Feb banks have maintained a 2%
excess of the required reserve requirement explaining the tapering off in the LAF
borrowing towards the end of the cycle. Call rates ended at 6.75% while the CBLO
rates closed unchanged at 6.49%.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Caution ahead of budget day; yields remain range bound
Government securities
Yield rose marginally today, after hitting a seven week low on Tuesday as traders
booked profits, ahead of the Union Budget on Monday. Overall sentiment in the
market will remain cautious until clarity about the government borrowing for the
next fiscal is delivered through the budget. The weekly inflation data due on
Thursday also weighed. The ten year benchmark bond closed 2bps lower at
8.04%, touching an intraday low yield of 8.00%. The most liquid 8.13% 2022
bond closed 2bps higher at 8.11%.
Crude Oil prices have been surging over the past few days on concerns about on
worries that oil supplies might be hit if the crisis in the West Asian countries
persists. Rising crude prices has mounted pressure on the swap rates on worries
over inflation and the consequent action the central bank may take in order to rein
in prices. The 5 year swap closed at 8.09% while the one year swap ended at
7.48%.
Non-SLR market
Short term CD rates continued to edge higher due to the high supply from Banks.
One year CDs were dealt at 10.15% level while three month CDs were dealt at
10.08% - 10.10% level. SBBJ placed one year CD at 10.13% for a quantum of INR
1.75bn and six month CD for a quantum of INR 750mn at 10.10%. Axis Bank
placed INR 7bn of six month CD at 10.25% and INR 750mn of one year CD at
10.28%. IDBI Bank placed INR 3bn of three month CD at 10.10%.
Money markets
Bank’s demand for funds remained stable towards the end of the reporting
fortnight. The central bank injected INR 776bn in the system through the LAF
compared to INR 763bn on Tuesday. Until 20th Feb banks have maintained a 2%
excess of the required reserve requirement explaining the tapering off in the LAF
borrowing towards the end of the cycle. Call rates ended at 6.75% while the CBLO
rates closed unchanged at 6.49%.
No comments:
Post a Comment