By -
Sep 3, 2014
India’s 10-year government bonds
gained for a third day on speculation an increasing cash supply
will drive demand for sovereign debt.
The nation’s lenders parked a net 225.6 billion rupees ($3.7 billion) via daily liquidity auctions at the Reserve Bank of India on Sept. 1, the most since October 2011, data compiled by Bloomberg show. They added another 201.85 billion rupees yesterday, signaling increased availability of funds. The growing cash supply is probably because of government spending at the beginning of the month, Harish Agrawal, a fixed-income trader at FirstRand Ltd. in Mumbai, said yesterday.
“Liquidity is abundant and that’s helping the bond markets,” said Sagar Shah, deputy vice-president for treasury at RBL Bank in Mumbai. “Continuous buying by foreign funds is boosting confidence.”
The yield on the 8.4 percent notes due July 2024 fell two basis points, or 0.02 percentage point, to 8.50 percent as of 10:06 a.m. in Mumbai, prices from the RBI’s trading system show. The yield has fallen six basis points this week to the lowest level since Aug. 20.
Overseas investors bought a net $2.8 billion of rupee corporate and government securities last month, exchange data show. That was the fourth straight month of inflows and boosted foreign holdings of Indian debt to a record $42 billion.
Standard Chartered Plc favors local-currency sovereign notes as India’s new government accelerates economic reforms amid expectations that inflation will ease, Chief Investment Strategist Steve Brice in Singapore said last week. Money managers at Amundi Asset Management and Union Investment Privatfonds also said last week that they consider Indian bonds attractive.
One-year interest-rate swaps, derivative contracts used to guard against swings in funding costs, were unchanged from yesterday at 8.45 percent, data compiled by Bloomberg show.
To contact the reporter on this story: Shikhar Balwani in Mumbai at sbalwani@bloomberg.net
To contact the editors responsible for this story: James Regan at jregan19@bloomberg.net Andrew Janes, Anil Varma
The nation’s lenders parked a net 225.6 billion rupees ($3.7 billion) via daily liquidity auctions at the Reserve Bank of India on Sept. 1, the most since October 2011, data compiled by Bloomberg show. They added another 201.85 billion rupees yesterday, signaling increased availability of funds. The growing cash supply is probably because of government spending at the beginning of the month, Harish Agrawal, a fixed-income trader at FirstRand Ltd. in Mumbai, said yesterday.
“Liquidity is abundant and that’s helping the bond markets,” said Sagar Shah, deputy vice-president for treasury at RBL Bank in Mumbai. “Continuous buying by foreign funds is boosting confidence.”
The yield on the 8.4 percent notes due July 2024 fell two basis points, or 0.02 percentage point, to 8.50 percent as of 10:06 a.m. in Mumbai, prices from the RBI’s trading system show. The yield has fallen six basis points this week to the lowest level since Aug. 20.
Overseas investors bought a net $2.8 billion of rupee corporate and government securities last month, exchange data show. That was the fourth straight month of inflows and boosted foreign holdings of Indian debt to a record $42 billion.
Standard Chartered Plc favors local-currency sovereign notes as India’s new government accelerates economic reforms amid expectations that inflation will ease, Chief Investment Strategist Steve Brice in Singapore said last week. Money managers at Amundi Asset Management and Union Investment Privatfonds also said last week that they consider Indian bonds attractive.
One-year interest-rate swaps, derivative contracts used to guard against swings in funding costs, were unchanged from yesterday at 8.45 percent, data compiled by Bloomberg show.
To contact the reporter on this story: Shikhar Balwani in Mumbai at sbalwani@bloomberg.net
To contact the editors responsible for this story: James Regan at jregan19@bloomberg.net Andrew Janes, Anil Varma
Posts
No comments:
Post a Comment