Monday, November 26, 2012
Financial Coffee
Saturday, November 24, 2012
Friday, November 23, 2012
Call rates trade steady on Friday
The overnight borrowing rates touched a high and low of 8.10% and 7.95% respectively
Interbank three day’s call rates were trading steady at its previous close of 8.05/8.10% on Thursday, with banks continuing to borrow from the central bank's repo window to meet the funding gap. However, call rates could surge given the absence of OMO announcement in light of tight cash situation. Cash deficit in the banking system rose for a seventh straight session above Rs 100,000 crore, highlighting the continued liquidity crunch in the banking system.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 118,890 crore via repo window on November 23, 2012. While, the banks using LAF facility borrowed Rs 124,040 crore through repo window and parked Rs 5 crore via reverse repo window on November 22, 2012.
The overnight borrowing rates touched a high and low of 8.10% and 7.95% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.01% on Friday and total volume stood at Rs 11,190.96 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.00% on Friday and total volume stood at Rs 25,871.10 crore, so far.
The indicative call rates which closed at 8.05/810% on Thursday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered.
Thursday, November 22, 2012
Financial Coffee
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Wednesday, November 21, 2012
Call rates edge bit higher on Wednesday
Interbank call rates were trading slightly higher at 8.10/15% from its previous close of 8.05/10%, as liquidity situation in the banking system remains largely unchanged with banks continuing to borrow from RBI to fund their deficit. Banks' holding of excess debt prefer to borrow from the central bank at the repo auction at 8 percent.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 106,970 crore via repo window on November 21, 2012. While, the banks using LAF facility borrowed Rs 104,710 crore through repo window and parked Rs 30 crore via reverse repo window on November 20, 2012.
The overnight borrowing rates touched a high and low of 8.15% and 7.95% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.01% on Wednesday and total volume stood at Rs 13,173.18 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.00% on Wednesday and total volume stood at Rs 23,103.45 crore, so far.
The indicative call rates which closed at 8.05/10% on Tuesday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered.
Bond yields edge higher in absence of OMO announcement
Bond yields edged a bit higher on Wednesday in absence of any Open Market Operation (OMOs) announcement from central bank on Tuesday, which sapped the demand of safe haven bonds. However, yields are expected to remain capped as traders still see the prospect of an announcement.
On the global front, US 10-year Treasuries struggled to regain ground in Asian trade on Wednesday after retreating the previous day on optimism that lawmakers will reach a deal to avoid a fiscal crisis that could dent economic growth. Meanwhile, Brent crude rose above $110 per barrel on Wednesday on fears of supply disruption from the Middle East as clashes raged between Palestinians and Israelis despite overnight truce talks.
The yields on 10-year 8.79% - 2021 were trading 1 basis point higher to 8.21% from its previous close of 8.20% on Tuesday.
The benchmark five-year interest rates were trading flat from previous close of 7.17%.
The Reserve Bank of India has announced the auction of 91-day and 182-day Government of India Treasury Bills for notified amount of Rs 5,000 crore each. The auction will be conducted on November 21, 2012 using 'Multiple Price Auction' method.
The Government of India have announced the sale (re-issue) of three dated securities for Rs 13,000 crore on November 23, 2012 (i) “8.19 percent Government Stock 2020” for a notified amount of Rs 3,000 crore (nominal) through price based auction; (ii) “8.20 percent Government Stock 2025” for a notified amount of Rs 7,000 crore (nominal) through price based auction; and (iii) “8.83 percent Government Stock 2041” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Fort, Mumbai on November 23, 2012 (Friday).
Friday, November 16, 2012
Closing Bell...Market Review
Late hour sell-off drag benchmarks below psychological levels
Indian benchmarks extended their southbound journey for sixth day in a row, hitting its lowest level in more than 9 weeks, with both the gauges snapping the Friday’s session with a brutal cut of over a percent as investors booked profits on the back of weak cues from European markets.
Market participants also remained caution ahead of next week’s resumption of parliament weighed heavily with investors also factoring in the worsening global risk environment. The frontline equity indices traded on a sanguine note for most part of the day after Finance Minister urged RBI to start working on issuing final guidelines for granting licenses to new banks and receiving applications from the interested entities in anticipation of Banking Regulation Act (BRA) being amended. The frontline gauges even looked set to breach the psychological 18,600 (Sensex) and 5,650 (Nifty) levels in the session as investors continued to show across the board buying interest.
Indian benchmarks extended their southbound journey for sixth day in a row, hitting its lowest level in more than 9 weeks, with both the gauges snapping the Friday’s session with a brutal cut of over a percent as investors booked profits on the back of weak cues from European markets.
Market participants also remained caution ahead of next week’s resumption of parliament weighed heavily with investors also factoring in the worsening global risk environment. The frontline equity indices traded on a sanguine note for most part of the day after Finance Minister urged RBI to start working on issuing final guidelines for granting licenses to new banks and receiving applications from the interested entities in anticipation of Banking Regulation Act (BRA) being amended. The frontline gauges even looked set to breach the psychological 18,600 (Sensex) and 5,650 (Nifty) levels in the session as investors continued to show across the board buying interest.
Call rates edge lower on reporting Friday
Interbank call rates were trading lower at 8.05/10% from its previous close of 8.10/8.15% on Thursday, as most banks’ already covered their mandated requirements on reporting Friday. Call rates are expected to rise with the start of new reporting cycle. Meanwhile, dealers are widely expecting RBI to hold an open market operation next week to infuse cash into the banking system.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 112,850 crore through repo window on November 15, 2012, while, the banks using LAF facility borrowed Rs 106,485 crore via repo window and parked Rs 15 crore via reverse repo window on November 12, 2012.
The overnight borrowing rates touched a high and low of 8.10% and 7.90% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.00% on Friday and total volume stood at Rs 22,332.33 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.77% on Friday and total volume stood at Rs 7930.55 crore, so far.
The indicative call rates which closed at 8.10/15% on Thursday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered.
Bond yields steady ahead of debt auction
The benchmark 10-year bond yield was steady at its previous close of 8.19 percent as market participants stayed on the sidelines ahead of the Rs 130 billion bond sale later in the day. Traders expect auction demand to be good following the unexpected drop in inflation in October to its slowest pace in eight months.
The 10-year bond is seen in a 8.18 to 8.20 percent band until the auction results.
The 10-year bond is seen in a 8.18 to 8.20 percent band until the auction results.
Saturday, November 10, 2012
Friday, November 9, 2012
Financial Coffee
Bond yields trade flat for third consecutive session
The yields on 10-year 8.79% - 2021 were trading 1 basis point lower at 8.18% from its previous close of 8.19%
Bond yields were trading flat for third consecutive session as markets await cues from Friday's auction demand and cutoffs, whereby Centre would be selling Rs 13,000 crore worth of bonds. Further, dealers also wait for industrial output and inflation data next week, though impact may be muted as country’s apex bank has said any rate cut was unlikely till next year.
On the global front, US Treasuries were firm in Asian trade on Thursday as President Barack Obama's re-election reinforced expectations that monetary policy would stay loose. Meanwhile, Brent crude rose above $107 per barrel as an almost 4 percent slump in the previous session, its biggest fall in about a year, lured some buyers although worries on the US fiscal cliff and Europe's woes kept a lid on gains.
The yields on 10-year 8.79% - 2021 were trading 1 basis point lower at 8.18% from its previous close of 8.19%.
The benchmark five-year interest rates were trading 1 basis point higher at 7.15% from its previous close of 7.14%.
The Government of India have announced the sale (re-issue) of three dated securities for Rs 13,000 crore on November 09, 2012, which includes (i) “8.19 percent Government Stock 2020” for a notified amount of Rs 3,000 crore (nominal) through price based auction; (ii) “8.20 percent Government Stock 2025” for a notified amount of Rs 7,000 crore (nominal) through price based auction; and (iii) “8.83 percent Government Stock 2041” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Fort, and Mumbai on November 09, 2012 (Friday).
Call rates edge lower for second consecutive session
The overnight borrowing rates touched a high and low of 8.10% and 7.95% respectively
Interbank call rates were trading lower at 8.05/8.10% from its previous close of 8.10/15% on Wednesday despite being the first week of the reporting fortnight as banks up-till now have excess bonds to provide as collateral and borrow from the central bank's repo window at 8 percent.
However, the call rates are expected to edge higher as liquidity is set to tighten in the coming weeks, given credit demand picks up and currency in circulation rises ahead of the festival season, which include the Diwali holidays in mid-November.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 79,620 crore through repo window on November 08, 2012, while, the banks using LAF facility borrowed Rs 66,520 crore via repo window on November 07, 2012 and Rs 2 crore via reverse repo window on the same day.
The overnight borrowing rates touched a high and low of 8.10% and 7.95% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.00% on Thursday and total volume stood at Rs 14032.18 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.01% on Thursday and total volume stood at Rs 29,503.05 crore, so far.
The indicative call rates which closed at 8.10/8.15% on Wednesday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered.
Wednesday, November 7, 2012
Financial Coffee
Call rates remain above repo level on higher demand
The overnight borrowing rates touched a high and low of 8.10% and 7.90% respectively
Interbank call rates were steady at its previous close of 8.05/10%, above repo level, on Monday as demand remained higher at the start of the reporting fortnight, since most of the banks preferred to cover for their mandated requirements in the first half of reporting cycle.
The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 42,315 crore through repo window on November 06, 2012, while, the banks using LAF facility borrowed Rs 58,205 crore via repo window on November 05, 2012.
The overnight borrowing rates touched a high and low of 8.10% and 7.90% respectively.
According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.99% on Tuesday and total volume stood at Rs 14,319.94 crore, so far.
As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.99% on Tuesday and total volume stood at Rs 34,108.25 crore, so far.
The indicative call rates which closed at 8.05/10% on Monday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered.
Bond yields tread water on Tuesday
The yields on 10-year 8.79% - 2021 were trading steady at its previous close of 8.19%
Bond yields were treading water on Tuesday after rising sharply in the previous session on concerns of government resorting to additional borrowing to fund a fiscal deficit target, which is expected to widen. Finance Minister P Chidambaram has reportedly raised government borrowing budget to fund a fiscal deficit expected to reach 5.3 percent, higher than the 5.1 percent target announced in March. Further, the yields were also impacted after reports suggested that RBI Governor D Subbarao said that the central bank may ease monetary policy as early as January, but any easing in December was 'highly improbable.'
On the global front, US 10-year Treasuries edged slightly lower in Asian trade on Tuesday but did not drift far from their recent ranges as investors awaited the outcome of Tuesday's presidential election, as well as a Greek vote later in the week on more austerity steps. Meanwhile, Brent oil oscillated in a tight range sub $108 per barrel on Tuesday, caught between uncertainty ahead of the US elections and renewed worries about Greece and the euro zone crisis, which could delay a global economic recovery further sapping oil demand.
The yields on 10-year 8.79% - 2021 were trading steady at its previous close of 8.19%.
The benchmark five-year interest rates were trading 1 basis point lower at 7.08% from its previous close of 7.09%.
The Reserve Bank of India has announced the auction of 91-day and 128-day Government of India Treasury Bills for notified amount of Rs 5,000 crore each. The auction will be conducted on November 07, 2012 using 'Multiple Price Auction' method.
The Government of India have announced the sale (re-issue) of three dated securities for Rs 13,000 crore on November 09, 2012, which includes (i) “8.19 percent Government Stock 2020” for a notified amount of Rs 3,000 crore (nominal) through price based auction; (ii) “8.20 percent Government Stock 2025” for a notified amount of Rs 7,000 crore (nominal) through price based auction; and (iii) “8.83 percent Government Stock 2041” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Fort, and Mumbai on November 09, 2012 (Friday).
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