MONEY MARKET ROUND-UP
Liquidity: In surplus
Liquidity remained surplus in the system since the RBI absorbed a total of Rs 42,000 crore from the market even after an outflow of Rs 17,000 crore towards the CRR hike. Call rates closed around 6.25 per cent, while rates in the collateralised lending and borrowing scheme (CLBO) hovered lower at 6 per cent. Volumes in the CLBO clocked Rs 34,000 crore as against Rs 18,037 crore in the call money market.
G-sec: Yields drop
Surplus liquidity was a major trigger for a rally in the government securities market. Besides, the market also drew comfort that the government would be borrowing only Rs 14,000 crore through the auction of dated securities as against a surplus liquidity of over Rs 40,000 crore in the remaining part of the first half of the financial year.
The yield on the benchmark ten-year paper closed at 7.82 per cent as against 7.86 per cent on Monday. Prices of bonds across maturities moved up in the range of 10-50 paise. Volumes on the negotiated dealing system (NDS) of the RBI reached around Rs 7,300 crore.
Corporate bonds: Issue afoot
The Nabard launched its three-year and five-year bonds to raise Rs 200 crore with an unlimited greenshoe option. It will be offering rates in the range of 8.92-9.10 per cent. Dealers expect banks to come out with upper tier-II and tier-II bond issues to meet their capital requirements.
CP-CD rates went up following the inching up of interest rates in the shorter end of the yield curve. Kotak Mahindra Bank issued certificates of deposit for one year at 8.40 per cent. Dealers said the bank could have mobilised funds at 8.25 per cent a week ago.
The overnight interest rate swap (OIS) market remained active with brisk trading. Rates of one-year and five-year OIS have come down to 7.12/7.15 per cent and 7.33/7.38 per cent as against 7.20 per cent and 7.14 per cent on Monday.
Forex: Re weakens
After remaining volatile for some time, the foreign exchange market closed rangebound.
Inflows into the Indian market and dollar weakness globally led the spot rupee to open stronger at 40.36 to a dollar as against a close of 40.41/42 on Monday. However it closed the day at 40.41 to a dollar.
Global markets: Rangebound
Even if the euro, pound and yen moved rangebound against the dollar, all the three major currencies gained nevertheless. The euro closed at $1.3792 ($1.3815 on Monday), the pound ended at $2.0269 ($2.03) and the yen ended at $118.65 ($ 117.80).
Liquidity: In surplus
Liquidity remained surplus in the system since the RBI absorbed a total of Rs 42,000 crore from the market even after an outflow of Rs 17,000 crore towards the CRR hike. Call rates closed around 6.25 per cent, while rates in the collateralised lending and borrowing scheme (CLBO) hovered lower at 6 per cent. Volumes in the CLBO clocked Rs 34,000 crore as against Rs 18,037 crore in the call money market.
G-sec: Yields drop
Surplus liquidity was a major trigger for a rally in the government securities market. Besides, the market also drew comfort that the government would be borrowing only Rs 14,000 crore through the auction of dated securities as against a surplus liquidity of over Rs 40,000 crore in the remaining part of the first half of the financial year.
The yield on the benchmark ten-year paper closed at 7.82 per cent as against 7.86 per cent on Monday. Prices of bonds across maturities moved up in the range of 10-50 paise. Volumes on the negotiated dealing system (NDS) of the RBI reached around Rs 7,300 crore.
Corporate bonds: Issue afoot
The Nabard launched its three-year and five-year bonds to raise Rs 200 crore with an unlimited greenshoe option. It will be offering rates in the range of 8.92-9.10 per cent. Dealers expect banks to come out with upper tier-II and tier-II bond issues to meet their capital requirements.
CP-CD rates went up following the inching up of interest rates in the shorter end of the yield curve. Kotak Mahindra Bank issued certificates of deposit for one year at 8.40 per cent. Dealers said the bank could have mobilised funds at 8.25 per cent a week ago.
The overnight interest rate swap (OIS) market remained active with brisk trading. Rates of one-year and five-year OIS have come down to 7.12/7.15 per cent and 7.33/7.38 per cent as against 7.20 per cent and 7.14 per cent on Monday.
Forex: Re weakens
After remaining volatile for some time, the foreign exchange market closed rangebound.
Inflows into the Indian market and dollar weakness globally led the spot rupee to open stronger at 40.36 to a dollar as against a close of 40.41/42 on Monday. However it closed the day at 40.41 to a dollar.
Global markets: Rangebound
Even if the euro, pound and yen moved rangebound against the dollar, all the three major currencies gained nevertheless. The euro closed at $1.3792 ($1.3815 on Monday), the pound ended at $2.0269 ($2.03) and the yen ended at $118.65 ($ 117.80).
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