Mumbai: Yields on the benchmark 10-year sovereign bond eased nearly seven basis points on Friday to 6.531% as the Reserve Bank of India (RBI) cancelled the 7-year bond auction scheduled for a notified amount of ₹11,000 crore. The RBI cancelled the auction as yields bid by auction participants were likely higher than the central bank’s … Read more
Mumbai: The Reserve Bank of India’s (RBI) decision to revert to the multiple price method for auctions of sovereign bonds after three years signals confidence on the part of the Centre and its debt manager about New Delhi’s fiscal management, with the first such debt sale validating that trust. The multiple price auction method was … Read more
Mumbai: India’s derivatives market for rate products is penciling in reductions in the cost of funds, beginning perhaps early 2024, even though the central bank has repeatedly stressed last week’s ‘pause’ in rate action applied to that policy review only. Overnight indexed swap (OIS) rates, used to hedge interest-rate risks in Asia’s third-biggest economy, are … Read more
By Kartik Goyal A conspicuous silence from the Reserve Bank of India regarding support for the nation’s bonds has left traders wondering whether the recent gains in yields is a new normal. The central bank may be trying to increase the attraction of sovereign debt by letting yields rise, according to PNB Gilts Ltd. The … Read more