India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
Bonds pull through some losses; GoI downsizes Friday’s auction
Government securities
Sovereign bonds recuperated some losses today after GoI decided to downsize
Friday’s auction to INR 60bn compared to the budgeted INR 110bn. The central
bank will also infuse liquidity through OMOs worth INR 120bn; in order to be in
command of the situation which has slipped out of the comfort zone of +/- 1% of
NTDL. The 10 Yr benchmark bond closed 11 bps lower at 8.10%, after touching an
intraday low yield of 8.06%, on optimism of its extended life as benchmark.
Volume saw sharp rise, backed by the positive market sentiment, clocking in INR
100 bn today compared to INR 40 bn on Monday.
At the State Development Loan auction, cut off bid came in the range of 8.43% -
8.44% for the total quantum of INR 29.75 bn for the four states.
Non-SLR market
CD issuance remained robust and banks mopped up INR 60 bn in the primary
market. Canara Bank and Punjab National Bank placed INR 18 bn and INR 12 bn
respectively in three month CD at 8.95%. Dena Bank placed three month CD
amounting to INR 5 bn at 9% while Syndicate Bank placed same maturity CD at
8.96% for an amount of INR 4 bn.
Money markets
LAF window borrowing continued to be upwards of the INR 1trn mark. Today
banks borrowed INR 1.18 trn from the central bank, scouting for funds amidst the
tight liquidity situation, to meet their reserve requirement during the first week for
the fortnightly reporting. Call rates eased marginally closing 4 bps lower at 6.67%
however rates will continue to remain under pressure due to the outflow of the
advance tax payments.
Swaps
Swap rates remained firms despite expected inflow of INR 120 bn through OMOs
on 9th December. Concerns about further action by Reserve Bank to control the
liquidity kept the one year and five year swap rate at 6.95% and 7.47%
respectively.
No comments:
Post a Comment