Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
7.99% 2017 bond gains maximum on anticipated FII demand
Government securities
Bonds continued the rally for the second day in a row as underlying sentiment
remained buoyant in anticipation of increased demand for sovereign securities
after SEBI allocates the unused investment limits to FIIs on Tuesday. Yields have
corrected in the range of 10-17bps, since the budget on 28th Feb-11 due to the
lower than expected borrowing from GoI and now boosted by the additional
demand from FIIs. Since the sovereign limits (to be auction) have a restriction of
residual maturity of more than five years, the 7.99% 2017 bond and 7.80% 2020
bond have gained the maximum
Non-SLR market
Short term rates eased 5-10bps across maturity due to the improvement in the
liquidity. Three month CDs were dealt below the 10% level while the one year CDs
were dealt at 10.05%. Central Bank of India placed INR 10bn of one year CD at
10.085% and INR 2bn of three month CD at 9.99%. SBBJ & SBH placed INR
1.25bn and INR 1.0bn respectively of three month CD at 9.99%. Syndicate Bank
placed INR 5bn of one year CD at 10.05% and Allahabad Bank placed INR 4bn of
June maturity CD at 10.00%
Tata Capital placed three month CP at 10.42% for a quantum of INR 2bn and
Manapurram Finance placed same maturity CP at 11.75% for INR 1bn. HDFC
placed INR 11bn of three year bond at 9.90%
Money markets
LAF borrowing continued to hover around the INR 550bn level due to the tapered
demand from banks towards the end of the reporting cycle. Volumes at the CBLO
window remained healthy at INR 500bn owing to the relatively lower rate
compared to the RBI’s repo rate.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
7.99% 2017 bond gains maximum on anticipated FII demand
Government securities
Bonds continued the rally for the second day in a row as underlying sentiment
remained buoyant in anticipation of increased demand for sovereign securities
after SEBI allocates the unused investment limits to FIIs on Tuesday. Yields have
corrected in the range of 10-17bps, since the budget on 28th Feb-11 due to the
lower than expected borrowing from GoI and now boosted by the additional
demand from FIIs. Since the sovereign limits (to be auction) have a restriction of
residual maturity of more than five years, the 7.99% 2017 bond and 7.80% 2020
bond have gained the maximum
Non-SLR market
Short term rates eased 5-10bps across maturity due to the improvement in the
liquidity. Three month CDs were dealt below the 10% level while the one year CDs
were dealt at 10.05%. Central Bank of India placed INR 10bn of one year CD at
10.085% and INR 2bn of three month CD at 9.99%. SBBJ & SBH placed INR
1.25bn and INR 1.0bn respectively of three month CD at 9.99%. Syndicate Bank
placed INR 5bn of one year CD at 10.05% and Allahabad Bank placed INR 4bn of
June maturity CD at 10.00%
Tata Capital placed three month CP at 10.42% for a quantum of INR 2bn and
Manapurram Finance placed same maturity CP at 11.75% for INR 1bn. HDFC
placed INR 11bn of three year bond at 9.90%
Money markets
LAF borrowing continued to hover around the INR 550bn level due to the tapered
demand from banks towards the end of the reporting cycle. Volumes at the CBLO
window remained healthy at INR 500bn owing to the relatively lower rate
compared to the RBI’s repo rate.
No comments:
Post a Comment