T-Bill returns attractive than bank FDs
The Reserve Bank of India (RBI) set the cut-off yield on the 91-day, 182-day, and 364-day Treasury bills at 6.82 per cent, 7.02 per cent, and 7.03 per cent, respectively
Reserve Bank of India set the cut-off yield on the 91-day, and 364-day T-bills at 6.86 per cent, and 7.05 per cent respectively
Meanwhile, government bond yields inched up slightly, tracking a rise in US Treasury yields
The Reserve Bank of India has fixed the cut off yield on the 91-day, 182-day, and 364-day T-bill at 6.72 per cent, 6.87 per cent, and 6.93 per cent, respectively
The latest data showed that banks parked almost Rs 1.4 trillion with the RBI on Tuesday, as compared to Rs 1.3 trillion on July 19
Banks parked almost Rs 1.3 trillion with RBI on Tuesday, versus Rs 2.3 trillion on July 4
A few dealers said that the firm demand for T-bills may help steepen the yield curve in the second quarter
Surplus liquidity in the system, as indicated by the amount of funds that banks park with RBI, increased to Rs 34,843.21 crore on Tuesday, from Rs 18,657.21 crore on Monday
In Asia, several ultra-wealthy clients continued to cut back their exposure amid the tumult this week. In the Middle East, some customers asked the bank to convert cash deposits into treasury bills
Short-term instruments, such as T-bills, are extremely sensitive to interest rate expectations
The Indian government is concerned about rising yields on Treasury-bills and will take appropriate remedial measures
Yield curve inversion suggests that the market is becoming more pessimistic about the economic prospects for the near future
Around a year ago, the yield on the 10-year bond was more than 220 bps higher than that on the 364-day T-bill
Yield curve flattens; T-bill, 10-year bond spread now at 16 bps versus 222 bps a year ago
Wider October trade deficit, contraction in exports drag down rupee
The Deputy Governor flagged instances of wild swings in sovereign bond yields in response to factors such as the announcement of the government's borrowing programme and interest rate changes
The government may avoid incremental borrowing via the bills and only borrow to meet its previous repayment needs in the next quarter
Rupee likely at 81.68 by December-end, largely stable at 81.75 by March-end
Yields across both securities rose 7-8 basis points over the previous week's auction