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MUMBAI: For the second consecutive week, the RBI cancelled the public sale of presidency securities (G-Secs), price Rs 24,000 crore, for the reason that authorities had sufficient money in its coffers. In line with the G-Sec public sale calendar that was revealed on September 27 final 12 months, the federal government was to borrow Rs 24,000 crore on February 18.
“On a evaluation of the money steadiness place of the federal government, it has been determined…to cancel the public sale of all of the securities scheduled to be held on February 18, 2022,” the RBI mentioned on Monday.
The choice is predicted to additional assist soften the G-Sec yield, prefer it did when the earlier public sale scheduled on February 11 was cancelled, bond sellers mentioned. After the RBI on February 7 had cancelled the G-Sec public sale, the benchmark bond yield on 10-year gilts had softened from 6.95% degree to its Monday closing degree of 6.68%, official knowledge confirmed.
Information from the central financial institution confirmed that as of February 5, the federal government had practically Rs 2-lakh-crore money with it. “The choice is predicted to chill market sentiment additional and would assist the present rally in bond costs to proceed,” a bond market participant mentioned on Monday.
Additionally, the LIC IPO is predicted to usher in about Rs 60,000-70,000 crore into the federal government’s coffers by March finish. “Money steadiness of the federal government is predicted to stay snug for the following few weeks,” the market participant mentioned.
“On a evaluation of the money steadiness place of the federal government, it has been determined…to cancel the public sale of all of the securities scheduled to be held on February 18, 2022,” the RBI mentioned on Monday.
The choice is predicted to additional assist soften the G-Sec yield, prefer it did when the earlier public sale scheduled on February 11 was cancelled, bond sellers mentioned. After the RBI on February 7 had cancelled the G-Sec public sale, the benchmark bond yield on 10-year gilts had softened from 6.95% degree to its Monday closing degree of 6.68%, official knowledge confirmed.
Information from the central financial institution confirmed that as of February 5, the federal government had practically Rs 2-lakh-crore money with it. “The choice is predicted to chill market sentiment additional and would assist the present rally in bond costs to proceed,” a bond market participant mentioned on Monday.
Additionally, the LIC IPO is predicted to usher in about Rs 60,000-70,000 crore into the federal government’s coffers by March finish. “Money steadiness of the federal government is predicted to stay snug for the following few weeks,” the market participant mentioned.
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