The RBI may use an incremental CRR to absorb rising surplus liquidity before raising the repo rate, as core liquidity could approach ₹10 trillion in coming weeks
The central bank turned a net dollar buyer for the first time since February, while its outstanding net short position in the forward market declined in June
The rupee settled 0.35 per cent higher at 95.41 per dollar as central bank intervention and falling crude prices lent support; benchmark bond yields also eased
The senior notes, issued through the bank's IFSC Banking Unit, will mature in August 2031 and follow its $600 million international bond issuance last week
SBI Research says the MPC minutes carried a more hawkish tone than the RBI governor's remarks, leaving markets uncertain about the future course of interest rates
The central bank absorbed ₹1.41 trillion through seven-day and overnight VRRR auctions at 5.24 per cent, and announced a ₹1.75 trillion two-day auction for Tuesday
The state-owned lender raised ₹2,500 crore through a 15-year bond at a 7.55 per cent cut-off coupon, but withdrew its three-year issue after receiving bids at higher yields
FCNR(B) deposits accounted for nearly 90 per cent of the total at $65.40 billion, while ECBs and OFCBs contributed $2.59 billion and $4.86 billion, respectively
Reserves have risen by nearly $50 billion since the last week of June, while foreign currency assets increased by $7.23 billion and gold reserves gained $2.68 billion
Benchmark 10-year government bond yield rose to 6.85% during the week, while the rupee weakened to 95.71 per dollar amid higher crude prices and hawkish MPC signals
The RBI's Central Board also reviewed various areas of the central bank's operations, including the functioning of its committees and the Ombudsman Scheme
Benchmark 10-year government bond yield rises 5 basis points to 6.87 per cent as markets increasingly price in the possibility of a rate hike at the next policy review
Strong bank demand at RBI's VRRR auctions highlights surplus liquidity in the system, as the central bank seeks to keep overnight rates aligned with its 5.25% repo rate
Local currencies will play an increasing role in cross-border trade and payments as settlement can lower transaction costs, currency mismatches and improve efficiency
Market participants expect the 10-year bond yield to rise 1-2 bps and the five-year yield 2-3 bps as traders factor in the possibility of a December rate hike
Five-year bond yield hardens by around 10 basis points in two sessions as traders unwind FCNR(B)-linked positions following the RBI's early closure of the swap window.
Global factors weigh on the currency despite sizeable FCNR(B) inflows, as economists flag tight financial conditions, volatile energy markets and competition for capital
