Tuesday, April 21, 2009

Canara Robeco MF : RBI Policy - Key Highlights

Our Expectations From Policy:

• With RBI giving a symbolic support in form of rate cut, participants are expecting further strong actions and support from RBI going ahead in helping revive the economy.

• Sovereign Debt: With plush liquidity, slowing credit growth and RBI stance to help revive economy,the benchmark yield has softened by 20 bps and is expected to soften further. We expect 10-year benchmark GOI to test 5.50% going ahead.

• Corporate Debt: The corporate bond market is subject to the supply of such bonds. Though themovement in long bonds depends upon underlying G-sec movements, liquidity is an importantfactor in short term. We expect 5 yr corporate bond to breach 7% and 10 yr corporate bond to test 8% going ahead.

One year CD rates could go sub 5% and 2-3 yr bonds are expected to be in range of 6.25% -6.75% going ahead.

Liquidity will be buoyant in the system and overnight rates will therefore continue to remain in range of 2.50% – 3. 50%.



Explore your hobbies and interests. Click here to begin.

No comments:

Blog Archive

Life Insurance | Health Insurance | Auto Insurance


Investors Please Listen !

 
More than 100 kinds of Insurance products from more than
20 companies under one roof.



Call: 9818269396 
investorspleaselisten@in.com
www.investorspleaselisten.blogspot.com

 

 

Safe Harbor:

The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
Powered by Olark
Advertising Learn to Invest