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97 ArticlesFixed Income

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FIIs Resume Buying into Indian Rupee Debt

We all know that FIIs have been buying equities like crazy. How have they been doing on the debt front? We take a deeper look into their recent activity in ...

RBI Policy: FIIs Can’t Buy T-Bills Anymore

So RBI hates short term FII flows. It has first restricted commercial paper (which is corporate borrowing of less than 1 year) ownership by FIIs to only Rs. ...

Term Repo Goes at 8.42%, MSF No Longer the Operational Rate

The third term repo auction – this one for 14 days, and for 38,500 crore rupees – was bid at 8.42%. This is below the weighted average rate of ...

Fixed Income: 7-Day Repo, 15,000 cr. G-Sec Auctions Tomorrow

The first 7 day repo auction as noted in the recent announcement for liquidity easing will be held tomorrow (Oct 11, 2013). The repo terms have also been ...

MSF Borrowing Goes Back Up, a Strange Repo Dip

Figures for the Marginal Standing Facility show that MSF borrowing has gone back up to 91,000 crores, a number larger than the 1% of NDTL (Total Deposits) that ...

91 Day T-Bills Return To Single Digits

Every Wednesday 91 day T-Bills are auctioned, and after Rajan’s first RBI policy, we have a moderation in T-Bill auction yields to 9.7% from the recent highs ...

RBI Will Remain the Lender of First Resort

RBI has promised liquidity to the system: Beginning with the Mid-Quarter Review of September 2013, the Reserve Bank of India began a calibrated unwinding of ...

Biggest Bond Devolvement of 2013 at Rs. 4,000 cr. Makes This the Worst in 12 Years

The 15,000 bond auction devolved over 25% today – that is, there weren’t enough bidders on the bonds and primary dealers HAD to buy it (they had ...

Underwriting Commissions for G-Sec Bond Auctions Go Up Again For the Monday Auction

Banks and Primary Dealers that have been underwriting government bond auctions have been getting great commissions recently. They have now earned over Rs. 440 ...

MSF Borrowing Still At 1.4 Trillion

MSF borrowing under the Marginal Standing Facility was 1.426 trillion (1.426 lakh crore) yesterday. This is close to the limit of 1.6 trillion that is the ...