The last time the RBI rejected bids on the 91-day treasury bills was on February 24, 2016, as per the central bank's database.
As part of the primary dealer activity, IDBI Bank is involved in market making activities in respect of G-Secs, including T-bills. IDBI's treasury actively participates in primary auction of government bonds.
Banking system liquidity turned into deficit for the first time since the pandemic on September 19.
The Reserve Bank has raised the cash deposit or reserve ratio limit for banks to contain liquidity surge post demonetisation. However, it has also assured it will revisit the limits once the government issues an adequate quantum of Market Stabilisation Scheme bonds. Here are 5 things you should know about MSS bonds and how they will help.
States' average borrowing cost rose from 8.07 percent in April to 8.23 percent in May, which further jumped to 8.31 percent in July.
The money raised will be utilised for funding requirements of the bank's foreign branches and for general corporate purposes, the bank said in a statement.
Over the course of remaining month and September, market will see some reduction of around 110 billion in Treasury Bills and Rs 100 billion in government bonds, says Silva
The political crisis in Washington that saw a 16-day partial US government shutdown damaged the perception of the US government`s redibility abroad, analysts say, prompting fears that China may reassess its investment in US Treasurys.
It appears that the Reserve Bank is going to take more severe steps to ensure that the rupee stays within that 60 mark or the dollar doesn‘t get more expensive.
According to Arjun Parthasarathy, investors can invest directly into fixed income securities or invest in short term income funds in the current market. It is advisable to stick to the best credit quality given the rising levels of bad loans and restructured loans in the system.
IDBI Dynamic Bond Fund, the New Fund Offer (NFO) launched by IDBI Asset Management Ltd., collected over Rs.115 crores, predominantly from around 3400 applications, mainly from retail investors, including HNIs.
As the government is all set to announce a fresh borrowing program on Monday, sharing his expectations, A Prasanna, Chief Economist, I-Sec Pd says the we could see another Rs 40,000 crore through dated borrowing and Rs 30,000-40,000 crore through T-bills for the entire fourth quarter.
Bond prices fell in after noon trades on news that the government will announce a fresh borrowing program on Monday. The 10 year yield rose from 8.45% to 8.53%.
With the uncertainty surrounding the fiscal deficit, experts say that they best debt investment right now active funds like bond funds or GILT funds.
Equities research and rating agency CRISIL will soon come up with credit indices that will track differently rated long-term and short-term bonds and is likely to facilitate penetration of corporate bond market in the country.
The economic affairs secretary today announced an increase in government borrowing for the second half of the fiscal (FY12) by Rs 52800 crore. He pointed towards the decline in small savings to be the reason behind the increase in gross borrowing.
Greece promised to shrink its bloated public sector on Tuesday ahead of a second conference call with the EU and the IMF, in a bid to convince them to pay out funds despite repeatedly missing the targets of its bailout deal.