It is hard to say if the OMOs are being done to soften yields, or to fill up the central bank's stock of bonds, but yields did not move up sharply in auctions
The amount of sovereign securities held by global funds has slumped Rs 76,700 crore ($10 billion) from this year's peak in February
The yield on the 6.18 per cent 2024 bond fell 26 basis points to 5.48 per cent.
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Such curtailed hours, in which bond and currency markets operated between 10 am and 2 pm, from 9 am to 5 pm in normal times, were in force till April 17
The cut-off yield for 10-year state development loans was at 7.60-7.65 per cent, whereas the 10-year government securities closed at 6.50 per cent.
Apex bank announces change in market timing, trading hours to function from 10 am to 2 pm
While the rupee hit its lifetime low of about 76.30 a dollar, the 10-year bond yields fell to 6 per cent, as Covid-19 led to an unprecedented slide in financial assets worldwide
Stock markets have also plummeted amid fears the global lockdown to contain the virus has tipped the world economy into a recession from which it will take year to recover.
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The benchmark 10-year bond saw trading volume of Rs 1,325 crore, and was the most traded one
While working from home, bond traders are doing bare minimum trade to cover their positions; there is also the expectation of a 50-150-bp rate cut
Forcing bondholders to take 100 per cent haircut on the bank's AT-1 bonds would lead to losses to the tune of Rs 10,800 crore, estimates Acuite Ratings
Experts say LTRO is the Indian version of quantitative easing, and that there should be more of it in coming days
The government borrows from the market for the buyback, but it is not doing so for the next year
Long-term bond yields have come down by 20 bps since first OMO last month
EXIM Bank confirmed that it is in the market but did not divulge specific details about the issues
Betting on the US was a winning strategy
Sovereign bonds slid after the report, with the yield on the benchmark 10-year note rising 5 basis points to 6.76 per cent
China's phased entry into several key bond gauges this year provides India with a template that could be shaped to its needs