January, 2009
NEW 10 YEAR BENCHMARK/AUCTION CUT OFF AND JOURNEY GOING FORWARD
RBI announced auction of three dated securities including auction of Rs.3000 crs of new 10 year benchmark viz. 6.05%, 2019. Following are the cut off prices and yields: 7.56% 2014 at Rs.107.40 ( 6.02%), 6.83% 2039 at Rs.93.75 ( 7.35%) and 6.05% 2109 at Rs.100 ( 6.05%) Though the xepected cut off for 2039 was [...]
INVESTMENT OPPORTUNITY IN LONG TERM GILT SCHEMES
If you all will recall, I had mentioned in my note circulated on December 22’2008 thatFiscal Deficit numbers will go haywire and Govt will have to resort to additional borrowing.Also there will be further pressure on borrowing calendar due to 3 G auction not likely to happen in the current Fiscal Year. The same has been [...]
SEBI CIRCULAR ON FMP/LIQUID/LIQUID PLUS SCHEMES AND ITS IMPLICATION ON THESE ASSET CLASSES
As you all are aware, SEBI had come out with 2 circulars on January 19’2009 circular nos: 13/150975 for Liquid and Liquid Plus and 14/151044 for Fixed Maturity Plans on the abovementioned asset classes and what the AMCs are supposed to do going forward based on guidelines spelt out in these circulars. Following is an analysis [...]
RBI POLICY REVIEW-JANUARY 27’2009
As expected, RBI did not announce any rate cuts in the policy announcement today. REPO is maintained at 5.5%, Reverse REPO at 4%, CRR at 5%, Bank rate at 5% & SLR at 24%. Growth targets for FY 09 is lowered from 7.5% to 7% with near term inflation target at 4-4.50% & below 3% [...]
DR.MAMNMOHAN SINGH’S TOP ECONOMIC ADVISOR BATS FOR RATE CUTS IN THE POLICY REVIEW ON JANUARY 27
Jan. 23 (Bloomberg) — Indian Prime Minister Manmohan Singh’s top economic adviser Suresh Tendulkar wants the central bank to reduce interest rates further in its Jan. 27 policy statement to stimulate a slowing economy. “My own preference would be to see some rate cuts there in next week’s policy,” Tendulkar told Bloomberg News in a [...]