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Thursday, March 20, 2014

Evening Bells: Bond yield rises by 04 bps

10-year G-sec Paper yield closes at 8.82% 

The yield on 10-year benchmark federal paper, 8.83% GS 2023, increased 04 basis points to end at 8.82% compared to 8.78% at close in the previous trading session. The total trading volume on central bank's gilts trading platform stood at Rs 19225 crore. 

Bond yield increased on rising US treasury yields after Fed chief Janet Yellen hinted at earlier-than-expected rate hikes. 

The weighted average rate in the overnight call money increased to 8.998% compared to 8.92% in the previous session. The call money rate hovered in the range of 8.65% to 9.10% with the volume of Rs 24659.54 crore. 

The Government of India have notified the repurchase of its securities through reverse auction for an aggregate amount of Rs 5000 crore on 24 March 2014. The securities included are 6.07% Government Stock 2014 (with date of maturity being 15 May 2014), 10.00% Government Stock 2014 (30 May 2014), 7.32% Government Stock 2014 (20 October 2014), 10.50% Government Stock 2014 (29 October 2014), 7.56% Government Stock 2014 (3 November 2014), 11.83% Government Stock 2014 (12 November 2014) and 10.47% Government Stock 2015 (12 February 2015). 

The Reserve Bank of India will conduct a 14-day term repo variable rate auction for a notified amount of Rs 40000 crore on 21 March 2014. The reversal of the 14-day term repo will take place on 04 April 2014. 

Further, in order to facilitate smooth and non-disruptive conduct of banking operations during the annual closing of accounts for the financial year 2013-14, the Reserve Bank has also decided: to conduct a 5-day term repo variable rate auction for a notified amount of Rs 20000 crore on 28 March 2014 with reversal on 02 April 2014. As a one-time measure, standalone primary dealers will be allowed to participate in the auction to be conducted on 28 March 2014 within the notified amount of Rs 20000 crore. 

Both the term repo auctions will be conducted as per the revised guidelines issued on 13 February 2014. Successful bidders will get the allotment at their respective bids to offer funds to the banks through the Marginal Standing Facility (MSF) on 31 March 2014 with reversal on 02 April 2014. The MSF window will remain open between 5.00 and 5.30 pm on 31 March 2014.
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