Mumbai: The Reserve Bank of India (RBI) surprised the bond market with an out of calendar three-day variable rate reverse repo (VRRR), underlining its intention of keeping liquidity on a tight leash as inflation worries cloud the central bank‘s thinking. The central bank received offers for ₹81,160 crore, less than half of the ₹2 lakh … Read more
Mumbai: North Block’s circumspect borrowing target for the second half of this fiscal failed to lift Indian bonds on Tuesday amid a palpable global threat of higher fuel prices, and signals from the central bank on baby steps to normalisation of liquidity potentially lifting overall rates marginally. The central bank raised the cut-off for bids … Read more
“Market participants are tapping risk-less opportunities,” said Asuhtosh Khajuria, executive director at Federal Bank. Synopsis Record rate reductions have caused the tri-party repo rates to fall below the reverse repo – and banks are making money without much sweat. Remember the much-talked-about yen carry trades all those years ago? That’s when funds borrowed big in … Read more