Pre Mid-quarter Policy Review: March 2013 Scenario:
Bond yields were trading flat with negative bias ahead of RBI’s mid-quarterly policy review, where a rate cut of 25 basis points is widely anticipated. The yields tilted a bit towards the red zone on speculation of RBI slashing the Cash Reserve Ratio by 25 bps, after Finance Minister’s comments of RBI taking care of liquidity issue in its mid quarter monetary policy review.
On the global front, US 10-year Treasuries slipped in Asian trade on Tuesday, however losses remained capped as investors remained concerned about a plan to tax bank deposits in Cyprus to help pay for the country's bailout. Meanwhile, Brent crude eased toward $109 a barrel on Tuesday as investors eyed a Cyprus vote later in the day on a bailout plan, which revived concerns about the euro zone debt crisis.
Back home, the yields on 10-year 8.79% - 2021 bonds were trading lower by 1 basis point at 7.87% from its previous close of 7.88% on Monday.
The benchmark five-year interest rate swaps were trading steady at its Monday’s close of 7.14%.
The Reserve Bank of India has announced the auction of 91-day and 364-day Government of India Treasury Bills for notified amount of Rs 7,000 crore and Rs 5000 crore respectively. The auction will be conducted on March 20, 2013 using 'Multiple Price Auction' method.
Post Mid-quarter Policy Review: March 2013 Scenario:
The yields were trading flat after RBI just about delivered a 25 cut in key repo rate and left the cash reserve ratio (CRR), a key liquidity tool, unchanged at 4%.
The yields on 10-year 8.79% - 2021 bonds were trading flat at 7.88%
No comments:
Post a Comment