Contrary to expectations for the new paper to be sold at 7,000 cr, RBI proposed to sell the new paper at Rs 9,000 cr, with 16,000 cr as the total auction size the report says.
Tuesday marked the announcement of new bond sales of RBI which was also the introduction of the new benchmark bond which would be put up for auction this Friday, says an ET report.
A delay by one day in the announcement stemmed a series of speculations among traders and investors who were already guessing the reason for the delay.
The delay made investors refrain from taking fresh positions thereby inflicting uncertainties in the market. G-Sec markets would attract interests of investors across the board for investment. Demand for paper would be met by bigger issuances, thanks to the new benchmark bond, said Badrish Kulhalli, fund manager, fixed income, HDFC Life Insurance as mentioned in the report.
In the When Issued Market, RBI’s new benchmark traded at 7.72% compared with 7.86% yield in the benchmark. Final yield would fall between 7.65-7.70% for the new security, dealers expect as per the report.
Contrary to expectations for the new paper to be sold at 7,000 crore, RBI proposed to sell the new paper at Rs 9,000 crore, with 16,000 crore as the total auction size the report says.
"We expect the new 10-year bond should be close to signalling the rate backed by the expectation of a further cut in coming days. Expected introduction of the new 10-year bond shall restore optimism in the overall market,” said Soumyajit Niyogi, interest rate strategist, SBI DFHI Primary Dealership, as stated in the report.
A delay by one day in the announcement stemmed a series of speculations among traders and investors who were already guessing the reason for the delay.
The delay made investors refrain from taking fresh positions thereby inflicting uncertainties in the market. G-Sec markets would attract interests of investors across the board for investment. Demand for paper would be met by bigger issuances, thanks to the new benchmark bond, said Badrish Kulhalli, fund manager, fixed income, HDFC Life Insurance as mentioned in the report.
In the When Issued Market, RBI’s new benchmark traded at 7.72% compared with 7.86% yield in the benchmark. Final yield would fall between 7.65-7.70% for the new security, dealers expect as per the report.
Contrary to expectations for the new paper to be sold at 7,000 crore, RBI proposed to sell the new paper at Rs 9,000 crore, with 16,000 crore as the total auction size the report says.
"We expect the new 10-year bond should be close to signalling the rate backed by the expectation of a further cut in coming days. Expected introduction of the new 10-year bond shall restore optimism in the overall market,” said Soumyajit Niyogi, interest rate strategist, SBI DFHI Primary Dealership, as stated in the report.
No comments:
Post a Comment