Money Market

Since the February policy announcement, the rate for 3-month treasury bills has dropped by 110 bps, 3-month commercial papers issued by NBFCs have fallen by 161 bps, and 3-month certificates of deposit have declined by 170 bps, according to RBI data.

Extended trading hours drive call money share to over 3% of money market

Historically, the share of call money volumes in the total turnover has remained in the range of 2-2.5 percent, however, in some instances, the share has increased to 3 percent due to higher demand for funds.

IndusInd Bank taps CD market after two months, gets 50 bps higher rate than peers

IndusInd Bank stayed absent from the primary market after mobilizing heavy funds in March. The lender had ramped up efforts to mobilise certificates of deposit in March to raise more than Rs 16,500 crore through CDs.

US money market funds reach record $6.67 trillion as institutional investors drive inflows

US money market fund assets have hit a record $6.67 trillion, rising by $81.6 billion last week as institutional investors sought safe assets amid Fed rate changes, per ICI data.

World Street: Stocks await $5.7-tn tailwind; gold glitters more in China; new fuel for EVs; and brightest Black Friday

From US money market to changing dynamics on the EV front and green projects to record shopping spree, here's a look into the markets around the world

Indian money markets come of age

The money market is the fountainhead of money supply for other markets. And, a vibrant and growing bond market accelerates economic growth at a faster clip

CP rates down 8-17 bps in last one month; will they sustain at these levels?

Rates on commercial papers issued by NBFCs fell by 17 bps and those on papers issued by manufacturing companies fell by 8 bps; all eyes on US Fed meet outcome for further rate trajectory.

RBI restores market trading hours to pre-pandemic timing

The central bank had during the pandemic reduced market trading hours in view of the operational dislocations and elevated levels of health risks posed by COVID-19. It gradually started to restore trading timings in a phased manner from November 09, 2020

FPI net investment in debt rises to seven-month high on index inclusion hope, but yields soar

Money market dealers said that the rise in yields can be attributed to higher domestic inflation, an uptick in US Treasury yields, the Reserve Bank of India (RBI) increasing the repo rate, and the rate hike by the US Federal Reserve

The implications of the liquidity squeeze in money markets

Overnight rates are trading higher than the repo rate due to a tightening of liquidity in the market 

Explained: Why the rupee fell to an all-time low

Economists say the ongoing geopolitical tensions among other factors led to such fall despite the Indian currency being one of the best performers in Asia of late.

Markets in search of a direction as year-end nears

Once market participants are able to assess the impact of these factors on future earnings and market performance, we shall see a new leadership emerging in the markets.

Mutual funds asset rises to all-time high of Rs17.37 tn in Jan

The industry, comprising 43 active players, had an average assets under management (AUM) of over Rs 16.46 lakh crore at December-end, the latest data of the Association of Mutual Funds in India (AMFI) showed.

MFs see Rs 16,000 cr inflow in Sep; Rs 2.34 lakh cr in H1 FY'16

With this, the total net inflow in mutual fund schemes has reached Rs 2.34 lakh crore in the April-September period of the current fiscal. In comparison, MFs had witnessed an inflow of Rs 80,895 crore in the year-ago period.

Mutual funds AUM drops to Rs 13.81 lakh cr in May

The asset base of country's mutual fund industry dropped to Rs 13.81 lakh crore at the end of May after hitting all time high in May

Rajan warning coming true? Bond mkt slowly eating banks' lunch

According to broking firm Ambit, Indian banks have lost around 500 basis points of market share in loans to the bond market over the last couple of years

Mutual fund asset base grows 10% to Rs 11.86 lakh cr

The country's 44 fund houses together saw a growth of around 10 percent in their asset base at Rs 11,86,364 crore at the end of April 2015The country's 44 fund houses together saw a growth of around 10 percent in their asset base at Rs 11,86,364 crore at the end of April 2015 according to data released by the Association of Mutual Funds in India.

Rangebound bonds may see momentum by mid-May: Jayesh Mehta

Both equities and money market have seen a bit of sell-off over the past few days, however, the bond market has relatively been stable. Jayesh Mehta of Bank of America feels the outlook remains constructive going ahead.

Range for 10-yr yield is 8.5-9% for next 2-3 months: HSBC

Markets were surprised with the 25 basis points repo rate hike and now there is a fear that rates may be hiked further. But even with the repo rate hike, the yields range for the 10-year bonds could be 8.50-9 percent for the next 2-3 months, says Manish Wadhawan of HSBC.

US Fed may need to drain up to $2 tn: Barclays

This huge sum of liquidity reduction would be needed for the central bank to achieve its rate target due to the high level of reserves banks have now, which has curbed their demand to borrow from the federal funds market

Currency in crisis: Here's why rupee fell below 64/$

Today morning some foreign institutional investors (FIIs) bought orders and the rupee quite gently moved on to 64.11/USD, which was the costliest that the dollar traded

RBI to manage liquidity as rupee stability trumps growth

The Reserve Bank of India, which has taken a series of measures to support the battered rupee, said on Monday it will continue to manage money market liquidity in order to balance financial stability, growth and inflation.

Here's why govt bonds remained unsold at RBI auction

The RBI, on Friday, came out with results of the bond auction to raise Rs 15,000 crore by selling soverign four securities. However, there was a devolvement on primary dealers to the tune of 1,330 crore on two papers. This was, however, lower than market expectation.

China cash rates ease further as central bank stays out

The Chinese central bank did not drain any cash from the market, and stocks recovered some of their big losses from earlier in the week as investor sentiment steadied

Re to underperform compared to Asian peers: StanChart

Agam Gupta of Standard Chartered Bank, says that he thinks that an extra demand for dollar due to trade deficit will continue to drive the rupee market. He also expects the euro-rupee can move higher and in a new range.