Banks parked almost Rs 1.3 trillion with RBI on Tuesday, versus Rs 2.3 trillion on July 4
A few dealers said that the firm demand for T-bills may help steepen the yield curve in the second quarter
Surplus liquidity in the system, as indicated by the amount of funds that banks park with RBI, increased to Rs 34,843.21 crore on Tuesday, from Rs 18,657.21 crore on Monday
In Asia, several ultra-wealthy clients continued to cut back their exposure amid the tumult this week. In the Middle East, some customers asked the bank to convert cash deposits into treasury bills
Short-term instruments, such as T-bills, are extremely sensitive to interest rate expectations
The Indian government is concerned about rising yields on Treasury-bills and will take appropriate remedial measures
Yield curve inversion suggests that the market is becoming more pessimistic about the economic prospects for the near future
Around a year ago, the yield on the 10-year bond was more than 220 bps higher than that on the 364-day T-bill
Yield curve flattens; T-bill, 10-year bond spread now at 16 bps versus 222 bps a year ago
Wider October trade deficit, contraction in exports drag down rupee
The Deputy Governor flagged instances of wild swings in sovereign bond yields in response to factors such as the announcement of the government's borrowing programme and interest rate changes
The government may avoid incremental borrowing via the bills and only borrow to meet its previous repayment needs in the next quarter
Rupee likely at 81.68 by December-end, largely stable at 81.75 by March-end
Yields across both securities rose 7-8 basis points over the previous week's auction
Rupee trade with few nations may start, internationalisation will take time
For tax-efficient exposure, go for target maturity funds maturing in 2026-2028
Australia has announced a parliamentary inquiry into long Covid, with the aim of developing a clear definition of the illness and gauging the scale of its impact on the country's 26 million people
The dollar hit a six-day high as Treasury yields surged, while inflation fears were bolstered as oil prices rose to their highest since 2014 on possible supply disruptions
How does the government raise funds to meet its obligations, in excess of its annual revenue generation? Well, it issues Treasury Bills or T-Bills. This report tells us more about it
U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints