What Is The MSF Limit, Really?
Warning: This is a complicated post on banking. If you are intimidated by acronyms please do not proceed further. There is some confusion regarding the limit, for any bank, that MSF (The Marginal...
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Underwriting Commissions for G-Sec Bond Auctions Go Up Again For the Monday...
Banks and Primary Dealers that have been underwriting government bond auctions have been getting great commissions recently. They have now earned over Rs. 440 cr. as underwriting commissions since...
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Biggest Bond Devolvement of 2013 at Rs. 4,000 cr. Makes This the Worst in 12...
The 15,000 bond auction devolved over 25% today – that is, there weren’t enough bidders on the bonds and primary dealers HAD to buy it (they had underwritten the issue yesterday). Here’s quick look at...
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91 Day T-Bills Return To Single Digits
Every Wednesday 91 day T-Bills are auctioned, and after Rajan’s first RBI policy, we have a moderation in T-Bill auction yields to 9.7% from the recent highs of over 12%. The government accepted about...
View ArticleFixed Income: 7-Day Repo, 15,000 cr. G-Sec Auctions Tomorrow
The first 7 day repo auction as noted in the recent announcement for liquidity easing will be held tomorrow (Oct 11, 2013). The repo terms have also been announced . Remember, this repo auction will...
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T-Bills Crowd Up Around 9%, Will This Reverse The Falling Yield Trend?
91-day T-Bill auctions happen every week. This week, the yield on these T-Bills was at 8.94%, and has come down considerably from the 12%+ levels we saw in July/August. On alternate weeks 182-day and...
View ArticleConsumer Price Inflation Indexed Securities Are Here
After launching Wholesale Price Inflation Indexed Bonds in Jun 2013, RBI with the Government will now issue Consumer Price Inflation Indexed Bonds . Note that CPI inflation has been running way above...
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Inflation Indexed Securities: Buy if at Lower Tax Slabs
Yes, you can now buy Inflation Protected Securities . RBI has announced that these bonds will be available for purchase between Dec 23 and Dec 31, 2013 . What are Inflation Protected Securities? At...
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Macronomics: The Insane Fiscal Deficit and The Onslaught of Bond Issuance
This is the archive of the Capital Mind Premium newsletter sent on Jan 3, 2013. At Capital Mind Premium we take a quick look at how the fiscal situation has panned out in this financial year. Fiscal...
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Government Buys Back Only May 2014 Bonds
The government has repurchased bonds worth 10,590 cr. and all of the accepted ones are the 6.07% that is maturing in May 2014. I had mentioned the repayment obligations in an earlier post : Now, what...
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