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G-Secs: In Monday s auction, RBI gets tepid response to conversion

G-Secs: In Monday’s auction, RBI gets tepid response to conversion May 17, 2021 Banks don’t seem too enthused to trade-in short-dated Government Securities Banks don’t seem too enthused to trade-in short-dated Government Securities (G-Secs/GS) they hold in their investment book for longer-dated G-Secs, going by the results of Monday’s switch/ conversion auction of G-Secs. The short-dated G-Secs, maturing between 2022 and 2024, carry relatively higher coupon rate vis-a-vis the longer-dated G-Secs, maturing between 2033 and 2061, they were to be converted into. Of the 10 G-Secs, aggregating ₹20,000 crore, the government wanted to switch into longer-dated G-Secs, only two got favourable response, receiving conversion offers exceeding the notified amount of ₹2,000 crore per G-Sec.

With the RBI deciding to give G-SAP a further push , G-Sec prices rally

May 05, 2021 Shaktikanta Das, Governor, RBI (File photo)   -  PAUL NORONHA× Second auction of G-Secs for ₹35,000 cr under G-SAP 1.0 to be held on May 20 The Government Securities (G-Secs) prices rose on Wednesday as the Reserve Bank of India (RBI) decided to increase the quantum of the G-Secs it will purchase at the second auction, under the G-Sec Acquisition Programme (G-SAP 1.0), to ₹35,000 crore as against ₹25,000 crore, it purchased during the first auction. “The second auction of the G-Secs for an aggregate amount of ₹35,000 crore under G-SAP 1.0 will be conducted on May 20, 2021,” RBI Governor Shaktikanta Das said. The price of the benchmark 2030 G-Sec (carrying a coupon rate of 5.85 per cent) rose 26 paise to close at ₹99.07 (previous close: ₹98.81), with its yield declining below 6 per cent to close at 5.98 per cent (6.01 per cent). The bond prices and yields are inversely related and move in opposite directions. The first purchase of the G-Secs for

RBI to buy and sell Rs 10,000 cr market bonds simultaneously under OMO

RBI to buy and sell Rs 10,000 cr market bonds simultaneously under OMO
business-standard.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from business-standard.com Daily Mail and Mail on Sunday newspapers.

Rupee s fortunes depend on RBI s intent to prevent further weakness: Economists

Rupee s fortunes depend on RBI s intent to prevent further weakness: Economists SECTIONS Last Updated: Apr 23, 2021, 05:07 PM IST Share Synopsis The rupee has already lost 2.6% against the dollar so far this month, putting it on the cusp of marking its worst month, since the pandemic hit the country early last year. A fortnightly Reuters poll showed bearish bets on the rupee climbed to their highest since last April, as the surge in infections has halted what had been seen as a promising growth story in the region. Related MUMBAI: The Indian rupee s near-term fortunes may directly be influenced by the Reserve Bank of India s intent on preventing any further depreciation in the currency as the surge in COVID-19 cases hits jobs and growth, economists and traders said.

RBI faces key auction as traders balk at yields

RBI faces key auction as traders balk at yields SECTIONS Last Updated: Apr 22, 2021, 07:13 AM IST Share Synopsis Underwriters were forced to rescue a five-year bond sale on April 9 and the RBI canceled an offering altogether on April 16. The Reserve Bank of India’s explicit assurance to buy 1 trillion rupees ($13 billion) of bonds this quarter has failed to encourage more purchases by traders. Related NSE By Subhadip Sircar Barely weeks into India’s new borrowing program, the nation’s sovereign bond traders and the central bank are shaping up for a third bruising battle. The Reserve Bank of India’s explicit assurance to buy 1 trillion rupees ($13 billion) of bonds this quarter has failed to encourage more purchases by traders. Underwriters were forced to rescue a five-year bond sale on April 9 and the RBI canceled an offering altogether on April 16 when traders demanded higher yields for benchmark 10-year debt.

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