n The government bond segment witnessed weak participation today, with total NDS-OM volumes closing at a dismal INR 36.75 bn. Yields were firm for most of the day as participants exhibited scepticism for the upcoming bond auction. Despite the scheduled re-issuance of the 10-year bond for INR 60 bn, participants offloaded INR 9.05 bn today, pushing its yield above 7% (at 7.01%).
n The finance minister attempted, in vain, to reassure markets of subdued yields despite increased bond supplies, as offshore players maintained sentiments of higher interest rates going ahead reflected in OIS trades—the 5-year OIS touched a high of 6.43% (up 7bps from its previous close).
n Overnight liquidity remained plush at INR 2.18 tn (sum of RBI's net LAF volumes and overnight money market volumes) earning participants an average return of 3.16%. CBLO volume shot up to a month's high of INR 610 bn as participants sought a higher return of 3% (up 16bps from yesterday).
n The INR 74.74 bn SDL auction for 6 state governments concluded with cut-off yields in the range of 7.95-8.03% (up 20-25bps from previous fortnight's INR 20 bn auction). The spread between central and state government securities surged 15bps to touch 95-100bps today, validating aggressive investor participation to induce bid-to-cover of 2.13.
n Shorter maturing corporate papers (2-3 year maturity) witnessed continued selling by fund houses with only select mutual funds posing as buyers. Yield on PFC's 11.15% 2011 bond closed 10bps higher at 6.75% than Friday's close. The 10-year corporate bond yield too firmed 5bps to close at 8.72%.
--~--~---------~--~----~------------~-------~--~----~
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.
You received this message because you are subscribed to the Google Groups "Investors Please Listen !" group.
To post to this group, send email to investorspleaselisten@googlegroups.com
To unsubscribe from this group, send email to
investorspleaselisten+unsubscribe@googlegroups.com For more options, visit this group at http://groups.google.com/group/investorspleaselisten?hl=en
-~----------~----~----~----~------~----~------~--~---
No comments:
Post a Comment