This is the sixth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained status quo. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
Read more about Bond bulls bring down 10-year yield below 6% for first time since Feb 12 on Business Standard. This was after the RBI assured the market of ample liquidity and another round of secondary market purchase of Rs 35,000 crore
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Dr. Shubha Varma and her husband perform a surgery together on a medical mission in the Dominican Republic. (Courtesy of Dr. Shubha Varma)
Lakshmi Iyer feels like she’s caught between two worlds. The 45-year-old financial service worker lives in Exton with her family, and has been watching with horror as COVID-19 cases have surged in her home country of India. Her Twitter feed is full of people back home begging for oxygen, searching for open hospital beds, or trying to secure remdesivir, Theraflu or other treatment drugs in short supply for sick loved ones. Entire families she knows are testing positive, including her in-laws. Eight people in her extended circle have died, she said.
This compares favourably against an expense ratio of 0.5-0.75 per cent on ETF.
Synopsis
The value of SGBs subscribed by investors was Rs 16,048.74 crore, the highest in any financial year since the bonds were launched by the NDA government in FY16. Inflows into gold ETFs in FY21, though the highest in a fiscal, were comparatively lower at Rs 6,918.96 crore.
Mumbai: Investor appetite for paper gold, especially for sovereign gold bonds (SGBs), grew to record levels in FY21, a year which saw the metal hit a record high of Rs 56,191 per 10 gm.
The value of SGBs subscribed by investors was Rs 16,048.74 crore, the highest in any financial year since the bonds were launched by the NDA government in FY16. Inflows into gold ETFs in FY21, though the highest in a fiscal, were comparatively lower at Rs
Let us talk about RBI’s Rs 1-trillion bond buying programme. Many are comparing it to the QE programme. How well do you think it will do its job in capping the spike in yields that we have seen in the last couple of months?
The announcement made by RBI with respect to GSAP and the Gsec acquisition programme is actually a master stroke in the sense that markets have been constantly in a state of anxiety that the only way that yields can move is northwards. Nobody is really interested in adding on because the uncertainty element was killing. So, the GSAP announcements have curbed a great deal of uncertainties. Effectively it means that the certainty quotients have upped significantly. Earlier the bond markets had OMOs or open market bond purchase or Operation Twist. But the timing was anybody’s guess. Now with a set calendar, that uncertainty is gone and we are seeing the bond yields continuing to party.