Call rates changed little from previous close

The overnight borrowing rates touched a high and low of 7.35% and 7.20% respectively

Interbank call rates were little changed at 7.25/30% from its previous close of 7.20/30% on Thursday as demand steadied in the first week of the new reporting fortnight. The Reserve Bank of India, so far, has desisted so far from announcing an open market operation this week, despite liquidity remaining tight.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 81,855 crore through repo window on May 24, 2013, while banks using LAF facility borrowed Rs 98,405 crore via repo window on May 23, 2013.

The overnight borrowing rates touched a high and low of 7.35% and 7.20% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.26% on Friday and total volume stood at Rs 22069.51 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.24% on Friday and total volume stood at Rs 43485.85 crore, so far.

The indicative call rates which closed at 7.20/7.30% 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, so far.

Bond yields tread water ahead of Rs 15,000 core debt sale

The yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.37% from its previous close of 7.38% on Thursday

Bond yields were treading water ahead of Rs 15,000 crore debt sale later in the day, wherein, good demand is expected. On the global front, US Treasury debt prices rose on Thursday after the Treasury saw solid demand for new inflation-linked bonds, though benchmark yields held above 2 percent as traders worried about how high yields might rise whenever the US Federal Reserve decides to taper its bond purchases. Meanwhile, Brent crude oil prices retraced earlier losses after falling to a three-week low on Thursday in a broader commodities selloff, riding the coattails of a late turnaround in US equities to end flat.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.37% from its previous close of 7.38% on Thursday, while the new 10-year paper is trading 2 basis point lower at 7.13% against its previous close.

The benchmark five-year interest rate swaps were trading steady at its previous close of 6.78% on Thursday.

The Government of India have announced the sale (re-issue) of four dated securities for  Rs 15,000 crore on May 24, 2013  (i) “8.12 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 6,000 crore (nominal) through price based auction;(iii) “8.32 percent Government Stock 2032” for a notified amount of  Rs 3,000 crore (nominal) through price based auction, and (iv) “8.30 percent Government Stock 2042” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Fort, Mumbai on May 24, 2013 (Friday).

Call rates edge lower; realigns with new repo rate

The overnight borrowing rates touched a high and low of 7.70% and 7.50% respectively

Interbank call rates were trading lower at 7.60/7.65% against its previous close of 7.60/7.70%, following a cut in the central bank's key lending rate to 7.50% from 7.75%. Call rates are expected to ease further in April once government spending picks up. Further, Reserve Bank of India (RBI) in its Mid-Quarter Monetary Policy Review: March 2013, has exuded its commitment towards actively managing liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy.

Meanwhile, RBI, to support an economy set for its slowest growth in a decade, in a much anticipated move, slashed its repo rate by 25 basis points at 7.50% against 7.75% earlier and left its Cash Reserve Ratio (CRR) unchanged at 4%. Consequently, reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, now stands adjusted to 6.50% with immediate effect.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 130,840 crore through repo window on March 20, 2013, while banks using special LAF facility borrowed Rs 120,385 crore through repo window and parked Rs 65 crore via reverse repo window on March 19, 2013.

The overnight borrowing rates touched a high and low of 7.70% and 7.50% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.67% on Wednesday and total volume stood at Rs 21,354.87 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.53% on Wednesday and total volume stood at Rs 12,656.60 crore, so far.

The indicative call rates which closed at 7.60/70% 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, so far.

Bond yields drop on RBI’s buyback announcement

The yields on 10-year 8.79% - 2021 bonds were trading lower by 2 basis points at 7.92% from its previous close of 7.94% on Tuesday

Bond yields dropped post Reserve Bank of India (RBI), after market hours on March 19, decided to conduct Open Market Operations (OMO) by purchasing government securities for an aggregate amount of Rs 10,000 crore on March 22, 2013 through multi-security auction using the multiple price method.

On the global front, US Treasuries prices climbed on Tuesday as a plan in Cyprus to tax bank accounts to help pay for a bailout unraveled, creating uncertainty about the island country's financial future and reviving fears about the stability of the euro-zone. Meanwhile, Brent crude rose toward $108 a barrel on Wednesday, recovering from a three-month low hit in the previous session, even as uncertainty in the euro zone after Cyprus rejected bailout terms capped the gains.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading lower by 2 basis points at 7.92% from its previous close of 7.94% on Tuesday.

The benchmark five-year interest rate swaps were trading higher by 2 basis points at 7.21% from its previous close of 7.19% on Tuesday.

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 5,000 crore respectively. The auction will be conducted on March 20, 2013 using 'Multiple Price Auction' method.

Call rates remains higher on sustained demand

The overnight borrowing rates touched a high and low of 7.95% and 7.75% respectively

Interbank call rates were trading little higher at 7.90/95% from its previous close of 7.85/95% on Monday, as demand remained high given that banks scrambled to fulfill their fortnightly requirements following the advance tax outflows, which strained banks cash situation. However, liquidity is expected to return to the system in a couple of weeks as the government spends the money collected through taxes.

Further, Reserve Bank of India (RBI) in its Mid-Quarter Monetary Policy Review: March 2013, has exuded its commitment towards actively managing liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy.

Meanwhile, RBI, to support an economy set for its slowest growth in a decade, in a much anticipated move, slashed its repo rate by 25 basis points at 7.50% against 7.75% earlier and left its Cash Reserve Ratio (CRR) unchanged at 4%. Consequently, reverse repo rate under the LAF, determined with a spread of 100 basis points below the repo rate, now stands adjusted to 6.50% with immediate effect.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 120385 crore through repo window on March 19, 2013, while banks using special LAF facility borrowed Rs 142695 crore through repo window and parked Rs 25 crore via reverse repo window on March 18, 2013.

Call rates edge higher with start of fresh reporting cycle

The overnight borrowing rates touched a high and low of 7.85% and 7.75% respectively

Interbank three day call rates were little changed at 7.80/85% from its previous close of 7.70/80% on Friday, as demand edged higher with the start of new reporting fortnight. Further, call rates are expected to witness a run up rally in next two-three sessions on account of anticipation of liquidity crunch given that corporates have already started making payment towards quarterly advance taxes.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 101,860 crore through repo window on March 11, 2013, while banks using special LAF facility borrowed Rs 43,760 crore through repo window and parked Rs 125 crore via reverse repo window on March 8, 2013.

The overnight borrowing rates touched a high and low of 7.85% and 7.75% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.80% on Monday and total volume stood at Rs 25,731.98 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.75% on Monday and total volume stood at Rs 31,297.30 crore, so far.

The indicative call rates which closed at 7.70/80% on Friday 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, so far.

Call rates steady above repo level on firm demand

The overnight borrowing rates touched a high and low of 7.90% and 7.75% respectively

Interbank call rates were trading steady at its previous close of 7.85/90% with demand remaining firm at the start of a new reserves reporting week. Further, banks' borrowing from the central bank has hovered at more than Rs 1 trillion for most of the month, showing the continued extent of the liquidity tightness in the banking system.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 115,290 crore through repo window on February 26, 2013, while banks using special LAF facility borrowed Rs 128,425 crore through repo window and parked Rs 25 crore via reverse repo window on February 25, 2013.

The overnight borrowing rates touched a high and low of 7.90% and 7.75% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.88% on Tuesday and total volume stood at Rs 24,568.15 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.75% on Tuesday and total volume stood at Rs 23,252.55 crore, so far.

The indicative call rates which closed at 7.85/90% 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, so far.

Bond yields trade lower after RBI unveils another round of OMO

Bond yields were treading lower after RBI unveiled another round of bond purchase to ease the tight cash condition. Further, the yields also edged lower on the back of a global risk-off due to Italy’s parliament deadlock.

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of Rs 10,000 crore on March 1, 2013 through multi-security auction using the multiple price method.

On the global front, US Treasury debt prices rose and benchmark yields dipped to the lowest in a month on Monday with safe-haven demand as Italian exit polls reflected uncertainty over whether the country would be able to form a stable government. Meanwhile, Brent crude futures fell by more than a dollar to one-month lows below $114 a barrel on Tuesday as a potential political vacuum in Italy revived worries over instability in the debt-plagued euro zone

Back home, the yields on 10-year 8.79% - 2021 bonds were trading down by 1 basis point at 7.79% from its previous close of 7.80%.

The benchmark five-year interest rate swaps were trading lower by 4 basis points at 7.85% from its previous close of 7.89%.

Markets to get a cautious start; Rail budget eyed

US markets slumped, while most of the Asian markets have made a soft start

The Indian markets barely managed a positive close in the last session, some panic selling in broader markets spooked overall market sentiments, though the bluechip stocks held their bastion and supported the markets to recover in the final hours. Today, the start is likely to remain cautious as the traders will be eyeing the debut Rail Budget of Pawan Kumar Bansal, on whether he yields to pressure of hiking passenger fares yet again or looks at other measures to mobilise resources to offset the burden of the recent diesel price hike. There is expectation of slew of passenger-friendly measures such as improvement in catering service, maintaining cleanliness at rail premises and development of stations. 

Railways stock like, Kernex Microsystems, Zicom Electronic, Titagarh Wagons, Kalindee Rail, Bartronics India and BEML that have been suffering since last couple of days, will see some action based on the announcements made in the Rail Budget. The other sector that is likely to be in spotlight today is telecom sector, as on the last day of the second round of spectrum auction, nobody applied for GSM waves, Russian conglomerate Sistema Shyam was the sole applicant for the 800 Mhz band spectrum used by CDMA operators and that too in just one of the three bands offered for sale.Though, traders are likely to get some strength as global ratings agency Standard & Poor's has said that it sees economic growth improving to 6.4 per cent next fiscal.

The US markets tumbled with the start of new week, though the indices got a positive start but uncertainty about the outcome of elections in Italy led the sharp selling in the markets. The Asian markets have made a mixed start with majority of them trading in red on concern that European debt crisis may come to the forefront again, with the election outcome of Italy. The Japanese market was suffering a cut of over a percent as the companies that do business in Europe dropped.

Back home, key domestic benchmarks witnessed another day of consolidation with both the frontline indices managed to keep their head above water on Monday. However, market participants stayed away from piling positions in risky assets ahead of Railway and Union Budget. The local gauges pulled back after breaching 19,250 (Sensex) mark as investors continued taking positions in software and technology stocks led by rally in Infosys, TCS and HCL Tech. Sentiments also got some support as select non-banking finance companies (NBFC) shares like Mahindra & Mahindra Financial Services, L&T Finance Holdings, Bajaj Finserv, Bajaj Finance and Reliance Capital all edged higher in early morning deals after the Reserve Bank of India (RBI) issued guidelines for the new bank licences, which will pave the way for both corporate entities and NBFC to begin banking operations.

Bond yields tread water ahead of Budget

The yields on 10-year 8.79% - 2021 bonds were trading steady at its previous close of 7.80% on Friday 

Bond yields were treading water as investors preferred staying on the sidelines ahead of the budget on Feb 28. However, traders will also watch the railway budget on Feb 26 for cues on how serious the government is about mending its finances.

On the global front, US Treasuries prices edged higher on Friday in the absence of key US economic data, as investors prepared for testimony next week from Federal Reserve Chairman Ben Bernanke, which will be scoured for clues of when the central bank may slow or stop buying bonds. Meanwhile, Brent crude was off 7 cents at $114.03, also ending last week with its biggest loss since early December.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading steady at its previous close of 7.80% on Friday.

The benchmark five-year interest rate swaps were trading flat at its previous close of 7.22% on Friday.

Call rates inch up at start of new reserves reporting week

Interbank call rates were trading higher at 7.85/90% from its previous close of 7.75/80% since demand edged higher at the start of a new reserves reporting week. The call rates ended at 7.80/85% on Saturday.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 74,140 crore through repo window on February 22, 2013, while banks using special LAF facility borrowed Rs 74,220 crore through repo window and parked Rs 365 crore via reverse repo window on February 22, 2013.

The overnight borrowing rates touched a high and low of 7.95% and 7.85% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.87% on Monday and total volume stood at Rs 24,470.27 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.75% on Monday and total volume stood at Rs 24,185.75 crore, so far.

The indicative call rates which closed at 7.80/85% on Saturday 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, so far.

Call rates edge lower on reporting Friday

The overnight borrowing rates touched a high and low of 7.95% and 7.85% respectively

Interbank call rates were trading lower at 7.90/95% from its previous close of 7.90/8.00% on Thursday, as demand ebbed on the last day of the reporting fortnight. Call rates also edged lower as bank’s borrowing from the central bank's repo window remained elevated above Rs 100,000 crore.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 112,310 crore through repo window and parked Rs 45 crore via reverse repo window on February 21, 2013, while banks using LAF facility borrowed Rs 122,270 crore through repo window on and parked Rs 40 crore via reverse repo window on February 20, 2013.

The overnight borrowing rates touched a high and low of 7.95% and 7.85% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.93% on Thursday and total volume stood at Rs 28,650.55 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.21% on Thursday and total volume stood at Rs 8,205.35 crore, so far.

The indicative call rates which closed at 7.95/8.00% 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, so far.

Bond yields edge tad lower as traders await budget 2013-14

The yields on 10-year 8.79% - 2021 bonds were trading steady at its previous close at 7.81% on Thursday

Bond yields edged tad lower as traders preferred to stay on the sidelines ahead of the budget on February 28, a crucial test of the government’s commitment to fiscal responsibility. However, lower crude oil prices may push up prices later in the session.

On the global front, US 10-year Treasuries slipped on Friday, giving back some of the gains made the previous day, when bonds rose on worries about Europe's economic outlook and data pointing to a tepid US recovery. Meanwhile, Brent crude rebounded above $114 a barrel on Friday but stayed on track for its largest weekly loss since early December, as investors focused on a debate in the United States on when it would pull a plug on its stimulus programme.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading steady at its previous close at 7.81% on Thursday.

The benchmark five-year interest rate swaps were trading 1 basis point lower at 7.23% from its previous close of 7.24% on Thursday.

Call rates little changed; PSU bank employees two day strike weighs

Interbank call rates were little changed at 7.85/7.90% from its previous close of 7.85/95% on Wednesday, in a holiday-shortened trading week. Further, call rates were little changed as normal banking operations were hit for the second day today as public sector bank employees continued their strike. The two-day nationwide strike call, demanding early wage revision among other issues, was given by United Forum of Bank Unions (UFBU) that comprises nine national unions.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 112,310 crore through repo window on February 21, 2013, while banks using LAF facility borrowed Rs 122,270 crore through repo window on and parked Rs 40 crore via reverse repo window on February 20, 2013.

The overnight borrowing rates touched a high and low of 7.95% and 7.80% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.86% on Thursday and total volume stood at Rs 24,270.49 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.73% on Thursday and total volume stood at Rs 21,377.25 crore, so far.

The indicative call rates which closed at 7.85/95% 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, so far.

Call rates creep higher on tight liquidity condition

Interbank call rates were little changed at 7.90/7.95%, up from its Friday’s close of 7.75/7.85%, as demand picked up with the start of the second week of reporting cycle amidst tight cash condition. Cash crunch is expected to persist up to mid-March as advance tax outflows begin from the system. Further, call rates ended at 7.60/7.65% in illiquid market on Saturday.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 125,860 crore through repo window on February 18, 2013, while banks using LAF facility borrowed Rs 120,120 crore through repo window on February 15, 2013 and parked Rs 15 crore via reverse repo window on the same day.

The overnight borrowing rates touched a high and low of 7.95% and 7.90% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.88% on Monday and total volume stood at Rs 22,426.24 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.76% on Monday and total volume stood at Rs 29,381.15 crore, so far.

The indicative call rates which closed at 7.60/65% on Saturday 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, so far.  

Bond yields trade higher on Monday

The yields on 10-year 8.79% - 2021 bonds were trading 2 basis points higher at 7.85% from its previous close of 7.83% on Monday

Bond yields were almost trading higher on the RBI chief's comments about there being limited room for monetary easing. The Reserve Bank of India’s Chief Duvvuri Subbarao struck a hawkish note on Feb 16 and said there are upside risks to inflation from food and commodity prices, while room for monetary easing is limited.

On the global front, US Treasuries prices slid on Friday on brighter outlooks from consumers, with investors turning to fiscal talks in Washington as a slate of budget cuts looms. Meanwhile, Brent crude rose slightly toward $118 a barrel on Monday, underpinned by expectations of improving global growth despite some weak US data dampening prices at the end of last week. Tensions in the Middle East also lent support.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading 2 basis points higher at 7.85% from its previous close of 7.83% on Monday.

The benchmark five-year interest rate swaps were trading 2 basis points higher at 7.26% from its previous close of 7.24% on Monday.

Eight State Governments have offered to sell dated securities by way of auction for an aggregate amount of Rs 7,070 crore (Face Value) on February 18, 2013.

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 5,000 crore each respectively. The auction will be conducted on February 20, 2013 using 'Multiple Price Auction' method.

Call rates little changed from previous close on Friday

The overnight borrowing rates touched a high and low of 7.90% and 7.70% respectively

Interbank call rates were little changed at 7.80/85% from its previous close of 7.80/90% on Thursday, as demand remained steady on expectation of eased liquidity condition, which was backed by the hopes of continued Open Market Operations (OMOs) by the central bank.

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of  Rs 10,000 crore on February 15, 2013.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 120,120 crore through repo window on February 15, 2013, while banks using LAF facility borrowed Rs 119,795 crore through repo window on February 14, 2013 and parked Rs 10 crore via reverse repo window on the same day.

The overnight borrowing rates touched a high and low of 7.90% and 7.70% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.83% on Friday and total volume stood at Rs 26,583.12 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.75% on Friday and total volume stood at Rs 34,881.45 crore, so far.

The indicative call rates which closed at 7.80/90% 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, so far.

Bond yields trade steady; RBI’s OMO purchase eyed

The yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.81% from its previous close of 7.82% on Thursday

Bond yields were almost trading steady at its previous close as dealers awaited to watch Rs 15,000 crore bond auction and RBI's OMO purchase during the session.

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of  Rs 10,000 crore on February 15, 2013.

On the global front, US Treasuries prices rose in Asian trade on Friday, extending gains from the previous day following disappointing growth data from the euro zone and a strong result at a 30-year bond auction. Meanwhile, Brent crude was steady at around $118 per barrel on Friday, after disappointing euro zone data revived concerns about the troubled region.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading 1 basis point lower at 7.81% from its previous close of 7.82% on Thursday.

The benchmark five-year interest rate swaps were trading steady at its previous close of 7.24% on Thursday.

The Government of India have announced the sale (re-issue) of three dated securities for Rs 12,000 crore (i) “8.12 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 6,000 crore (nominal) through price based auction; and (iii) “8.30 percent Government Stock 2042” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Fort, Mumbai on February 15, 2013 (Friday).  

Eight State Governments have offered to sell dated securities by way of auction for an aggregate amount of Rs 7,070 crore (Face Value) on February 18, 2013.

January WPI dips to four-year low of 6.62%

NEW DELHI: The Wholesale Price Index (WPI) for the month of January dipped to a four-year low of 6.62% versus 7.18% in December. This is below an ET Now poll estimate of 6.8%.  The manufactured products inflation dipped to 4.81% versus 5.04% in December. However January WPI food prices rose at 11.8% versus 11.16% in December. WPI had stood at 7.18 per cent in December and 7.24 per cent in November. It was at 7.23 per cent in January, 2012. Further, inflation in manufactured items category too witnessed a decline and stood at 4.81 per cent in January, as per official data released today. Inflation in food articles, which have a 14.3 per cent share in the WPI basket, however witnessed an increase as onion prices shot up during the month. Inflation in the food articles category was at 11.88 per cent from 11.16 per cent in December. Onions became expensive by 111.52 per cent during January, from 69.24 per cent in December, 2012. While rice became costlier by 17.31 per cent in January, from 17.10 per cent in December, vegetables became dearer by 28.45 per cent from 23.25 per cent in last month. Inflation in wheat and cereals stood at 21.39 per cent and 18.09 per cent respectively in January. Potatoes were expensive by 79.07 per cent, while inflation in pulses was up 16.89 per cent. While, inflation in egg, meat and fish stood at 10.81 per cent, those of milk rose up 4.47 per cent and fruits by 8.42 per cent. For the fuel and power category, it moderated to 7.06 per cent in January, compared to 9.38 per cent in December, 2012. The cooling off of January inflation would provide the much needed comfort to Reserve Bank, which had projected March-end inflation at 6.8 per cent. The central bank had last month lowered interest rates by 0.25 per cent saying that with inflation showing signs of remaining range bound, it was now critical to arrest the loss of growth momentum. Commenting on the inflation number Samiran Chakraborty, Regional Head of Research, India, Standard Chartered Bank said that the indicator is a good sign. Earlier this week data showed that retail inflation remained in double digits at 10.79 per cent in January, driven by higher prices of vegetables, edible oil, cereals and protein-based items. The retail inflation had stood at 10.56 per cent in December, 9.90 per cent in November and 9.75 per cent in October, 2012. The vegetables basket in January recorded the highest inflation of 26.11 per cent among all the constituents that make the Consumer Price Index (CPI), according to data released today. Vegetables were followed by the oil and fats segment at 14.98 per cent. Meat, fish and egg became 13.73 per cent more expensive during the month. While, cereals and pulses became dearer by 14.90 per cent and 12.76 per cent respectively on an annual basis, sugar turned more expensive by 12.95 per cent. Clothing and footwear witnessed 11 per cent increase in prices during the month. In urban areas, retail inflation rose to 10.73 per cent in January from 10.42 per cent in the previous month. The CPI for rural population increased to 10.88 per cent during the month from 10.74 per cent in December. The Reserve Bank of India (RBI) in its monetary policy last month had slashed its key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system to perk up growth through reduced cost of borrowing. The RBI has forecast the March end WPI inflation at 6.8 per cent. Meanwhile, industrial output growth rate contracted by 0.6 per cent in December.

Call rates trade steady on Wednesday

The overnight borrowing rates touched a high and low of 7.90% and 7.70% respectively

Interbank call rates were trading steady at its previous close of 7.75/7.85% on Tuesday, with demand remaining stable in the first week of the reporting fortnight. Further, surge of cash rates was also capped by RBI’s announcement of open market announcement.

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of  Rs 10,000 crore on February 15, 2013.

The banks via Liquidity Adjustment Facility (LAF) borrowed Rs 123,965 crore through repo window and parked Rs 15 crore via reverse repo window on February 12, 2013, while banks using LAF facility borrowed Rs 109,480 crore through repo window on February 11, 2013 and parked Rs 10 crore via reverse repo window on the same day.

The overnight borrowing rates touched a high and low of 7.90% and 7.70% respectively.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 7.83% on Wednesday and total volume stood at Rs 21,993.05 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 7.75% on Wednesday and total volume stood at Rs 20,080.25 crore, so far.

The indicative call rates which closed at 7.75/85% 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, so far.

Bond yields edge lower on RBI’s buy back announcement

The yields on 10-year 8.79% - 2021 bonds were trading 3 basis points lower at 7.84% from its previous close of 7.87% on Tuesday

Bond yields edged lower from its previous close, after the central bank announced that it would buy bonds via open market operations given the tight liquidity condition of banking system.

Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct Open Market Operations by purchasing the government securities for an aggregate amount of  Rs 10,000 crore on February 15, 2013.

On the global front, US Treasuries were little changed in Asia on Wednesday, with many investors looking out to a 10-year debt auction and retail sales data later in the day to potentially pull the market out of its recent trading ranges. Meanwhile, Brent crude steadied on Wednesday, holding just below a nine-month high near $119 per barrel on forecasts for a faster-than-expected growth in global oil demand this year.

Back home, the yields on 10-year 8.79% - 2021 bonds were trading 3 basis points lower at 7.84% from its previous close of 7.87% on Tuesday.

The benchmark five-year interest rate swaps were trading 2 bps higher at 7.29% from its previous close of 7.27% on Tuesday.

The Government of India have announced the sale (re-issue) of three dated securities for Rs 12,000 crore (i) “8.12 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 6,000 crore (nominal) through price based auction; and (iii) “8.30 percent Government Stock 2042” for a notified amount of Rs 3,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Fort, Mumbai on February 15, 2013 (Friday).

The Reserve Bank of India has announced the auction of 182-day and 91-day Government of India Treasury Bills for notified amount of Rs 5,000 crore. The auction will be conducted on February 13, 2013 using ‘Multiple Price Auction’ method.