The government is expected to raise Rs 1,00,000 crore of additional taxes under the Income Disclosure Scheme II (IDS II), which in turn will help in containing the 2017-18 fiscal deficit, says a report.
Kotak Mahindra Bank feels that the bond market is still worried about the absence of fiscal consolidation and that will keep it under stress going forward.
The Reserve Bank will conduct open market operations to purchase government bonds worth Rs 8,000 crore on August 30 to ease liquidity in the market.
Apollo Tyre | Fortis Healthcare | Financial Technologies | MCX India and Federal Bank are stocks, which are in the news today.
Investors are looking ahead at a planned open market operation sale of Rs 12000 crore from the Reserve Bank of India later in the day.
Bonds are likely to be under pressure due to lack of any OMO announcement, says Ramanathan K, ING Investment Mgmt.
The current liquidity deficit in the banking system implies RBI may resort to OMO again in a few weeks, which will keep the yields on the lower side of the range, says Vivek Rajpal, Nomura.
The likelihood of an upward revision of advanced GDP estimates and rising crude prices are expected to fuel bearish sentiments in the bond market, says Mohan Shenoi, Kotak Mahindra Bank.
Steady paper supply through auctions and low probability of an OMO is putting pressure on the bond market, says Ajay Manglunia, Head Fixed Income, Edelweiss.
Profit booking will continue, given the impending auction, lack of OMO and the sharp rally, says Ramanathan K, ING Investment Mgmt.
The bond market rally is likely to gain pace today. Government has deferred a bond auction this week citing good cash balance currently, says Sandeep Bagla, ICICI Securities.
Amidst steady supply of sovereign bonds and liquidity support via OMO buy backs the yields are likely to move in a narrow range, says Suresh Prabhu, Money Market Analyst.
The bond market is disappointed over the lower size of OMO announced by RBI, says Mohan Shenoi, Kotak Mahindra Bank.
Bonds are likely to remain rangebound in the near-term. Sentiment has improved considerably after the OMO announcement, says Dhawal Dalal, DSP BlackRock Invst Managers.
The Indian banking system liquidity deficit is within comfort zone and the RBI will take more steps to address the deficit if needed, its Deputy Governor Subir Gokarn said on Friday.
Bond prices are likely to remain rangebound with an upward bias. RBI's OMO announcement has enthused market participants, says Dhawal Dalal, DSP BlackRock Invst Managers.
The bond market is likely to remain biddish on the hopes of further OMO next week, ahead of advance tax outflows and RBI's mid-quarter review, says Mohan Shenoi, Kotak Mahindra Bank.
The revival of OMO has provided the much needed relief, in terms of liquidity, says Suresh Prabhu, Money Market Analyst.
In an utterly surprising move, the Reserve Bank yesterday said it will buy Rs 10,000 crore worth of bonds from the market today via open market operations (OMOs). Yields are expected to fall sharply tomorrow, reports Latha Venkatesh.
The bond markets got a big boost yesterday as the Reserve Bank of India (RBI) announced that it will buy bonds worth Rs 10,000 crore on November 24. Suyash Choudhary, head of fixed income at IDFC Mutual Fund expects the total amount of infusion to be between Rs 60,000-70,000 crore.