Jul 10, 2013 10:55 AM IST
Spooked by the flight of overseas investments in Indian securities, the government started doling out bounties on primary bond dealers (PDs) whose commissions have zoomed manifold. This is aimed at building confidence while protecting them from any possible loss if yields rise after the bond auctions, sources told moneycontrol.com.
- Jun 19, 2013 08:36 PM IST
The Reserve Bank of India (RBI) will conduct the second tranche of inflation indexed bonds (IIBs) auction for Rs 1,000 crore on June 25, 2013. These bonds of 10-year tenure (2023) will carry a real yield of 1.44 percent, according to a government notification.
- Jun 04, 2013 02:36 PM IST
Inflation index bonds were fully subscribed in RBI's auction on Tuesday. The effective interest rate comes around 8 percent. Largest institutions and primary dealers participated in the auction.
- May 29, 2013 08:43 PM IST
The government will launch its first tranche of proposed inflation indexed bonds (IIBs) amounting to Rs 1,000 crore on June 4, 2013. Retail investors can buy them to tune of 20% of bond sales.
- May 27, 2013 08:53 AM IST
The drop in the bond yields will not only boost trading income from huge excess SLR portfolio at over Rs 4 lakh crore but also improve the mark-to-market of HTM category. Banks will cut lending rates only when the operating policy rate shifts from repo to reverse repo, says Moses Harding, head of asset liability committee at IndusInd Bank.
- May 20, 2013 04:51 PM IST
RBI may link the proposed inflation index bonds (IIBs) to CPI - inflation as and when it stabilizes but currently, those are linked to WPI - inflation, a senior official from the central bank said. Linking it to WPI, many believe, will not serve its basic purpose of IIBs.
- May 16, 2013 01:37 PM IST
IIBs are indexed to the Wholesale Price Index (WPI) which is geared to capture broader systemic inflation rather than the inflation that bites you and me.