January, 2012
POST RBI POLICY REVIEW & IT’S IMPACT ON SHORT & LONG END OF THE YIELD CURVE
RBI Policy Review had sprung a major surprise by cutting CRR by 50 bp to 5.50% . This was done to infuse permanent liquidity to address the structural pressures on liquidity. In the initial phase, this will infuse liquidity to the tune of Rs.32,000 crs; and over longer period to the tune of almost Rs1.50 [...]
INTERESTING PLAY IN 1-3 YEAR BUCKET
A very interesting story is likely to unfold in 1-3 year segment on the yield curve. Most of the market participants are in consensus about a downward bias on the yields of various maturities based on various factors which I have enumerated in my last note on AXIS Constant Maturity Scheme. I have given reasons [...]
AXIS CONSTANT MATURITY FUND
I had given a trading call in G Secs in a systematic manner from July 2011 (when 10 year benchmark was 8.50%)to November 2011 (when 10 year benchmark peaked at 9% levels). Thereafter I gave a disinvestment call from 8.45% levels on December 11’2011. I also mentioned in that note that the way one can [...]