Cite better balance between demand and supply as well as inflation relief
Next week, states will participate in the final auction for the current financial year and as per the indicative calendar, they are expected to raise Rs 29,399 crore from the market
At the previous state loan auction, the cut-off yield on the 10-year state government securities was set in a range of 7.36-7.41 per cent
Governance standards, viability of biz among priorities
Sentiment was also impacted by VRRR auctions by RBI last week to suck out liquidity
Gilt and dynamic fund investors reap nearly Rs 330 crore in gains, reveals estimates
The medium- to high-maturity variety of these funds can also offer capital gains if interest rates fall
However, the tenure of securities is not announced in the Budget and communicated to the market during the release of the half-yearly borrowing calendar in March and September
The Puducherry government has offered to sell 12-year dated securities to the public in the form of stocks by auction for an aggregate amount of Rs 200 crore, a release from the Commissioner-cum-Secretary to Finance of Puducherry administration Ashish Madhaorao More said. The auction would be conducted by the Reserve Bank of India's Mumbai office (Fort) on January 9. Securities will be issued for a minimum nominal amount of Rs 10,000 and in multiples of Rs 10,000 thereafter. Interested persons, firms, companies, corporate bodies, institutions, Provident Funds, trusts, regional rural banks and cooperative banks may submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core banking solution (E-Kuber), available on the website www.rbi.org.in on January 9 between 10.30 am and 11 am, the release said. The result of the auction will be displayed by RBI Mumbai (Fort) on January 9 on the website. Successful ..
The yield spread widened to 53 basis points on Tuesday. The last time the yield spread widened above 50 basis points was in January 2022
The widening of the spread on state-government paper over central government bonds may work as a dampener, according to treasury executives
At the first weekly auction of the last quarter of 2023-24, the states saw their interest burden sharply rising to cross the 7.7 percentage mark on Tuesday, leading to the spread between the cut-off of 10-year state bonds and the G-sec yield crossing the 50 basis points mark for the first time in two years. At 53 basis points, the spread between the yield on the sovereign debt and that of the state bonds is the highest since January 2022. According to Aditi Nayar, the chief economist at Icra Ratings, both coupons at 7.71 per cent and the spread jumped to record levels due to the concerns of large supply in the final quarter of the fiscal year. At the maiden auction of the fourth quarter, six states collectively raised Rs 16,000 crore through state government securities (SGS) which is 19 per cent on-year higher, and in line with the amount indicated for the week in the Q4 auction calendar. Taking a cue from the all-time high indicative borrowing of Rs 4.1 lakh crore in the final ...
In February of the same year, the central bank had released draft norms for lending and borrowing of government securities aimed at expanding participation in the securities lending market
Tamil Nadu secured Rs 6,000 crore through two papers - Rs 3,000 crore through a 10-year paper with a cut-off yield of 7.66%, and Rs 3,000 crore through a 30-year paper with a cut-off yield of 7.56%
The cut-off yield on the 10-year state bond was set in a range of 7.62-7.63%, against 7.71-7.74% in the previous week
Government bond funds net Rs 2,000 crore investments in October
In 2021, the RBI came out with the Retail Direct Scheme, a one-stop solution to facilitate investment in government securities by retail investors. NRI investors can also invest via the platform
Cut-off yield highest in FY24 so far
The AAA-rated bond yields settled at 7.83-7.92 per cent on Monday, whereas, the yields on AA-rated bonds settled at 8.63-8.66 per cent
Industry experts say anything between $20 billion and $30 billion could flow in, at least on paper. There could also be more interest in Indian G-Secs among foreign investors