RBI Liquidity Steps Send Indian Bond Yields to a Three-Year Low
2 months ago

RBI Liquidity Steps Send Indian Bond Yields to a Three-Year Low

Live Mint  

-- Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. “We see measures as a decisive turn in the monetary policy easing cycle by the Reserve Bank of India,” Goldman Sachs Group Inc.’s economists led by Santanu Sengupta, wrote in a note. The Reserve Bank of India late Monday said it will buy 600 billion rupees worth of bonds via auction purchases in the open market. Read: Indian Bonds Poised to Rally Further on Borrowing Cut Bets Earlier this month, Bloomberg News reported that the RBI under new Governor Sanjay Malhotra was considering more measures to ease the prevailing cash crunch. “Our confidence on the 25 basis points February rate cut view has been buttressed by these liquidity measures now as they can create the right preconditions for better transmission of monetary policy easing,” Citibank economists including Samiran Chakraborty wrote in a note.

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History of this topic

Will US Fed's rate pause derail RBI's liquidity easing plans?
1 week, 2 days ago

Will US Fed's rate pause derail RBI's liquidity easing plans?

India Today  

The US Federal Reserve kept its benchmark interest rate steady at 4.25%-4.50%, as expected. The Reserve Bank of India has already started liquidity easing, and there’s growing speculation that another 25 bps rate cut could be on the horizon. The Fed’s stance could create a tailwind for global equities.” Foreign institutional investors have been cautious in recent months, but a …

DC Edit | RBI cautious amid uncertainties
3 weeks, 2 days ago

DC Edit | RBI cautious amid uncertainties

Deccan Chronicle  

The Reserve Bank of India’s announcement to inject nearly Rs 1.9 lakh crore cash into the banking system in March, in addition to Rs 1.7 lakh crores that it infused in February as part of its liquidity-enhancing measures, reflects its concerns about global economic uncertainties. While the RBI injected Rs 1.9 lakh crores through open market options and forex swaps …

India short bond yields dip as dovish RBI aids sentiment
1 month ago

India short bond yields dip as dovish RBI aids sentiment

Live Mint  

MUMBAI, Feb 24 - Indian benchmark bond yield ended little changed on Monday, while shorter-duration bond yield declined, as the central bank's longer-term liquidity infusion plan and dovish commentary aided sentiment. "Given unanimity in views at the committee about lacklustre growth despite recent revival, and signs of more conviction about food inflation that has been a key headwind, the case …

RBI to conduct $10 billion forex currency exchange to infuse liquidity in India’s banking system
1 month, 1 week ago

RBI to conduct $10 billion forex currency exchange to infuse liquidity in India’s banking system

Live Mint  

MUMBAI - The Reserve Bank of India will conduct a massive $10 billion three-year dollar/rupee swap auction next week to infuse durable rupee liquidity into the banking system, which has been reeling under large cash deficits, the central bank said on Friday. "The three-year maturity of the swap indicates that the RBI is looking at injecting more durable liquidity in …

India’s Economic Growth Set to Pick Up Pace, RBI Says
1 month, 1 week ago

India’s Economic Growth Set to Pick Up Pace, RBI Says

Live Mint  

-- India’s economy has recovered its lost momentum and consumption demand may improve on the back of moderating inflation and tax relief, the Reserve Bank of India said in its monthly bulletin. According to the RBI report, robust monsoon-sown crop and better winter sowing, along with higher reservoir levels, “augur well for food inflation going forward.” But uncertainty in global …

RBI pumps in Rs 45 trillion in banking system since December to meet liquidity needs
1 month, 1 week ago

RBI pumps in Rs 45 trillion in banking system since December to meet liquidity needs

New Indian Express  

MUMBAI: The Reserve Bank has injected a whopping Rs 45 trillion into the banking system since the December 6 monetary policy review when it slashed the cash reserve ratio by 50 bps to 4%, releasing Rs 1.16 trillion into the system. Of the total, more than Rs 43 trillion of fresh liquidity has flown into the system between December 11 …

Rate cut not helping drive growth, focus should be on liquidity measures: Axis Bank economist
1 month, 1 week ago

Rate cut not helping drive growth, focus should be on liquidity measures: Axis Bank economist

Live Mint  

Mumbai, Feb 18 The Reserve Bank should focus on making liquidity easier rather than cutting rates if the intent is to drive growth, Axis Bank's chief economist Neelkanth Mishra said on Tuesday. Mishra said if the objective of the rate cut is to trigger more borrowings, the new loans are not going to get done at lower rate as the …

Where debt fund investors should park their money amid expected fall in yields, rate cuts
1 month, 1 week ago

Where debt fund investors should park their money amid expected fall in yields, rate cuts

Live Mint  

The G-Sec 10-year bond yield, a key benchmark for domestic bond markets, has risen 10 basis points since the Reserve Bank of India cut its repo rate by 25 basis points earlier this month. Mint spoke with debt fund managers about their outlook following RBI’s first rate cut in nearly five years and the fiscal policy measures announced in the …

India bond yields seen steady before key events
1 month, 1 week ago

India bond yields seen steady before key events

Live Mint  

By Dharamraj Dhutia MUMBAI, Feb 18 - Indian government bonds are expected to trade largely unchanged in early deals on Tuesday, as investors await key market-moving events, including debt purchase by the central bank and Federal Reserve minutes, in the second half of the week. The Reserve Bank of India will buy bonds worth 400 billion rupees on Thursday, which …

India rupee to take cues from dollar path, tariff reaction; bonds to eye liquidity moves
1 month, 1 week ago

India rupee to take cues from dollar path, tariff reaction; bonds to eye liquidity moves

Live Mint  

By Dharamraj Dhutia and Nimesh Vora MUMBAI, Feb 17 - The Indian rupee's direction this week will be shaped by the dollar's reaction to its recent correction and whether worries over U.S. tariffs continue to subside, while the bond market will be on watch for any further liquidity infusion measures by the central bank. That was largely due to the …

RBI to inject $16 billion liquidity boost into banking system next week amid tax outflows: Report
1 month, 2 weeks ago

RBI to inject $16 billion liquidity boost into banking system next week amid tax outflows: Report

Live Mint  

India's central bank, the Reserve Bank of India, is set to ramp up the liquidity in the nation's banking system through the infusion of $16 billion by next week amid the large tax outflows, reported the news agency Reuters. The central bank has doubled the amount of government securities that the nation aims to buy to $4.61 billion, based on …

RBI’s first rate cut in five years is small but can be effective
1 month, 2 weeks ago

RBI’s first rate cut in five years is small but can be effective

Live Mint  

Last week’s monetary policy meeting has several firsts to its credit: It was the first of 2025, the first under a new governor of the Reserve Bank of India, the first since Donald Trump became US president, and the first in five years to cut the repo rate. The result is that the RBI’s operational target—the call money rate, or …

Indian bond yields rise as central bank policy, weak rupee weigh on sentiment
1 month, 2 weeks ago

Indian bond yields rise as central bank policy, weak rupee weigh on sentiment

Live Mint  

By Dharamraj Dhutia MUMBAI, Feb 10 - Indian government bond yields rose in early trading on Monday as investors remained cautious following the central bank's monetary policy decision, while the local currency's decline also weighed on sentiment. "Bonds are facing impact from a combination of factors, including the day two impact of central bank's monetary policy decision, constant fall in …

Monetary policy: Surely, a rate cut could’ve waited for some clarity to emerge
1 month, 2 weeks ago

Monetary policy: Surely, a rate cut could’ve waited for some clarity to emerge

Live Mint  

Even in the otherwise arcane world of central banks, where rules have long displaced discretion and legislated mandates are the order of the day. How else can one explain the difference in policy outcomes at the February 2025 meeting of the Reserve Bank of India’s Monetary Policy Committee vis-à-vis its earlier meeting in December 2024? After the shift to ‘flexible …

RBI kicks off rate cut cycle—what it means for borrowers and markets
1 month, 3 weeks ago

RBI kicks off rate cut cycle—what it means for borrowers and markets

Live Mint  

The long-awaited policy rate easing by the Reserve Bank of India is finally here. Meanwhile, GDP growth, at 5.4% in the July–September 2024 quarter, is estimated at 6.5% for the full fiscal year—below India’s potential growth rate, warranting monetary support. The RBI is also introducing forward contracts in government securities, enabling long-term investors like insurance funds to better manage interest …

RBI bites the bullet and cuts rate but red-flags global pressures on growth
1 month, 3 weeks ago

RBI bites the bullet and cuts rate but red-flags global pressures on growth

Live Mint  

Mumbai: The Reserve Bank of India’s monetary policy committee on Friday unanimously cut the repo rate by 25 basis points to 6.25%—the first in nearly five years—chiefly to take advantage of easing inflation to spur economic growth. In his first monetary policy review since taking charge in December, RBI governor Sanjay Malhotra said the MPC will continue to remain watchful, …

Liquidity support is priority; rate cut a close call
1 month, 3 weeks ago

Liquidity support is priority; rate cut a close call

Live Mint  

The backdrop of the monetary policy committee meeting later this week is a complex one. So, the MPC must decide whether to stay cautious given the high retail inflation prints in recent months or deliver a rate cut relying on the RBI’s forecast of benign future inflation—overall, it seems to be a close call in February, rather than being a …

India bond yields a tad up before budget, 10-year yield posts monthly decline
1 month, 4 weeks ago

India bond yields a tad up before budget, 10-year yield posts monthly decline

Live Mint  

By Dharamraj Dhutia MUMBAI, Jan 31 - Indian government bond yields ended marginally higher on Friday as market participants await the annual budget for directional triggers. Economists polled by Reuters expect New Delhi to stick to a fiscal deficit target of 4.5% of gross domestic product for the financial year starting in April when it presents the budget on Feb. …

Indian banks’ liquidity crunch is partly RBI’s own doing
1 month, 4 weeks ago

Indian banks’ liquidity crunch is partly RBI’s own doing

Live Mint  

The chickens are coming home to roost. In July 2024, RBI had suggested that banks assign an additional 5% ‘run-off factor’—broadly, the portion of deposits kept handy to cover a surge in withdrawals—for retail deposits that can be accessed via internet and mobile banking. One, in accordance with the Basel III framework of the Basel Committee on Banking Supervision, banks …

RBI’s ₹1.5 trillion liquidity boost: How will it help?
Trending News
2 months ago

RBI’s ₹1.5 trillion liquidity boost: How will it help?

Live Mint  

The Reserve Bank of India has announced a set of forex and money market measures that will collectively infuse ₹1.5 trillion over time, amid a clamour for liquidity from multiple bankers and money market participants. Average liquidity deficit in the interbank market crossed ₹3.3 trillion last week, thanks to heavy goods and services tax outflows. The liquidity deficit has been …

Mint Explainer: Understanding how RBI's measures will boost liquidity by ₹1.5 trillion, lead to rate cut
2 months ago

Mint Explainer: Understanding how RBI's measures will boost liquidity by ₹1.5 trillion, lead to rate cut

Live Mint  

The Reserve Bank of India announced a set of forex, money market and interest rate measures that will collectively infuse ₹1.5 trillion over time, amid a clamour for liquidity from bankers and money market participants. The average liquidity deficit in the interbank market crossed ₹3.3 trillion last week, thanks to heavy goods and services tax outflows. While the RBI responded …

RBI’s liquidity steps raise hopes for a rate cut next week
2 months ago

RBI’s liquidity steps raise hopes for a rate cut next week

Live Mint  

Mumbai: Relief arrived for India's parched banking system on Monday as the central bank rolled out measures to pump up liquidity, setting the stage for a potential interest rate cut next week. Bankers and economists said these measures will help relieve the current liquidity shortage and set the stage for a repo rate cut next week. The liquidity-easing measures also …

Indian Banks Said to Ask RBI to Delay April Liquidity Rule
2 months, 1 week ago

Indian Banks Said to Ask RBI to Delay April Liquidity Rule

Live Mint  

-- Some of India’s largest lenders are planning to request concessions from the new head of the nation’s central bank regarding proposed liquidity regulations, arguing the rules could hamper efforts to boost lending, according to people familiar with the developments. To be sure, the RBI did cut the cash reserve ratio — the proportion of deposits that banks must set …

RBI may cut policy rates by 50 basis points in first half of 2025: Report
2 months, 3 weeks ago

RBI may cut policy rates by 50 basis points in first half of 2025: Report

India TV News  

The Reserve Bank of India is expected to reduce policy rates by 50 basis points in the first half of 2025, according to a report by Jefferies. This follows the central bank's shift to a neutral liquidity stance and its recent reduction of the Cash Reserve Ratio by 50 bps during the last Monetary Policy Committee meeting. "After easing stance …

Indian Banking Liquidity Deficit Hits Highest in Six Months
3 months, 1 week ago

Indian Banking Liquidity Deficit Hits Highest in Six Months

Live Mint  

-- The liquidity deficit in the Indian banking system hit the highest in nearly six months on advance tax payments by companies and likely dollar sales by the central bank to curb rupee volatility. The banking system cash deficit, as measured by banks’ borrowings from the Reserve Bank of India, was at 1.5 trillion rupees as of Monday, the highest …

India’s 10-year bond yield may fall to 6.6% if RBI eases in Feb, ICICI Bank’s Prasanna says
3 months, 2 weeks ago

India’s 10-year bond yield may fall to 6.6% if RBI eases in Feb, ICICI Bank’s Prasanna says

Live Mint  

By Dharamraj Dhutia MUMBAI, Dec 11 - Indian government bond yields may trend in a narrow range in the near term, but the benchmark bond yield could ease to levels seen three years ago if the central bank cuts interest rates in its next policy meeting, the treasurer at ICICI Bank said. Going into the next year, if there is …

RBI cuts banks’ reserve requirements, a precursor to policy rate easing
3 months, 2 weeks ago

RBI cuts banks’ reserve requirements, a precursor to policy rate easing

Live Mint  

We have been talking about the Reserve Bank of India easing interest rates for quite some time. In the previous policy review on 9 October, the RBI changed its stance on interest rates from “withdrawal of accommodation" to neutral. Before the 9 October review meeting, the RBI had projected CPI inflation at 4.5% in FY25. At the previous meeting on …

CRR cut may boost bank margins, but tight liquidity challenges persist: Report
3 months, 2 weeks ago

CRR cut may boost bank margins, but tight liquidity challenges persist: Report

Live Mint  

As widely anticipated, the Reserve Bank of India in its December Monetary Policy Committee meeting announced a 50-basis-point cut in the Cash Reserve Ratio to enhance liquidity in the banking system. While the CRR cut may not immediately influence deposit and lending rates, it is anticipated to boost bank margins, according to SBI Research. SBI pointed out that the expected …

Stock market strategy: Should you increase your fixed income allocation as bond yields spike after RBI policy?
3 months, 3 weeks ago

Stock market strategy: Should you increase your fixed income allocation as bond yields spike after RBI policy?

Live Mint  

The Reserve Bank of India’s on December 6 kept the benchmark repo rate unchanged at 6.5% for the eleventh straight meeting, and maintained the monetary policy stance ‘Neutral’. Following the release of Q2FY25 GDP data, the bond market began anticipating potential monetary easing in the RBI policy. Bond Market Reaction The Indian government bond yields jumped, with the 10-year benchmark …

RBI reduces CRR to 4% for liquidity boost. 3 things to know
3 months, 3 weeks ago

RBI reduces CRR to 4% for liquidity boost. 3 things to know

India Today  

The Reserve Bank of India's Monetary Policy Committee has reduced the cash reserve ratio to 4% from 4.5% to address liquidity woes, announced Governor Shaktikanta Das. RBI Governor Shaktikanta Das said that lowering the Cash Reserve Ratio is consistent with the central bank's neutral policy stance. “A CRR cut would inject liquidity into the banking system, providing a cushion for …

RBI Is Said to Shore Up Banking Liquidity Before Rate Decision
3 months, 3 weeks ago

RBI Is Said to Shore Up Banking Liquidity Before Rate Decision

Live Mint  

-- India’s central bank has been shoring up banking system liquidity ahead of a key policy decision, having depleted it in recent days in its efforts to stabilize the rupee, according to people familiar with its transactions. The moves come at a time when the slowest pace of economic expansion in almost two years is mounting pressure on central bank …

India rates market signals easing, likely via liquidity, after weak growth data
Trending News
3 months, 3 weeks ago

India rates market signals easing, likely via liquidity, after weak growth data

Live Mint  

By Dharamraj Dhutia MUMBAI, - The drop in India's benchmark bond yields and swap rates signals the central bank may address weaker-than-expected economic growth by easing monetary policy, which, traders say, will likely be via a lower cash reserve ratio than by interest rate cuts. WHY IT'S IMPORTANT The Reserve Bank of India's monetary policy decision is due on Friday …

Current yields bolster case for longer-term India bond investments, HDFC AMC says
Trending News
3 months, 3 weeks ago

Current yields bolster case for longer-term India bond investments, HDFC AMC says

Live Mint  

By Dharamraj Dhutia MUMBAI, Dec 2 - Indian government bond yields are "attractive," and macroeconomic indicators such as slowing growth and demand-supply dynamics are bolstering the case for longer-duration fixed income investments, an executive at India's third-largest asset manager said. ".Given the macroeconomic factors are favourably placed, the current level of yields present an opportunity to increase duration on risk-reward …

Will RBI cut key interest rates on December 6? 3 things to know
3 months, 3 weeks ago

Will RBI cut key interest rates on December 6? 3 things to know

India Today  

As the Reserve Bank of India’s Monetary Policy Committee gears up for its December 6 meeting, market participants are weighing the likelihood of a key interest rate cut. Here are 3 things to know ahead of the upcoming RBI MPC meeting: GROWTH REMAINS UNDER PRESSURE India’s GDP growth dipped to 5.4% in Q2 FY25, a sharp decline attributed to weaker …

RBI Inquiries on Liquidity Spur Speculation of Action Next Week
4 months ago

RBI Inquiries on Liquidity Spur Speculation of Action Next Week

Live Mint  

-- India’s central bank has stepped up dialogue with traders at treasury desks this week about cash conditions in the banking system, according to people with knowledge of the matter, spurring speculation it may announce some measures to boost liquidity at the policy review on Dec. 6. Banks turned net borrowers from the central bank this week compared with a …

The hidden aspects of monetary policy
9 months, 3 weeks ago

The hidden aspects of monetary policy

Live Mint  

The Reserve Bank of India's monetary policy committee left the key policy rates unchanged for the eighth consecutive time, and maintained the policy stance as ‘withdrawal of accommodation’. Given the volatile nature of vegetable prices in India, there is a case to exclude the ‘one-off price shock’ of vegetable prices and look at the ‘underlying inflation trend’ in the context …

What is the outlook on the global economy? | Explained
11 months, 1 week ago

What is the outlook on the global economy? | Explained

The Hindu  

The story so far: The International Monetary Fund released the latest global financial stability report on Tuesday warning about the risks to the global financial system from persistent high inflation, rising lending in the unregulated credit market, and increasing cyber-attacks on financial institutions. Investors have been pushing up the prices of financial assets such as stocks in recent months in …

RBI Monetary Policy Meet underway: Key things to watch out for
1 year, 3 months ago

RBI Monetary Policy Meet underway: Key things to watch out for

Live Mint  

Reserve Bank of India Governor Shaktikanta Das will unveil the fifth monetary policy of the financial year 2023-24 on Friday, December 8, after a two-day review, as it observes the impact of global headwinds on India's macroeconomic indicators such as inflation trajectory and growth in gross domestic product. The review by the six-member Monetary Policy Committee led by Das will …

Deposit of ₹2000 notes, rise in RBI dividends to improve short-term liquidity
1 year, 9 months ago

Deposit of ₹2000 notes, rise in RBI dividends to improve short-term liquidity

Live Mint  

There will be an improvement in short-term liquidity due to an increase in RBI dividends and deposit of ₹2,000 notes by banks till September, predicts India Ratings in its latest edition of the monthly credit market tracking report. The report highlighted that the Banking system liquidity declined as of 25 May 2023 to around ₹500 billion on average. “Decline in …

RBI may buy $18 bn of bonds to boost liquidity, says B. Prasanna of ICICI
1 year, 10 months ago

RBI may buy $18 bn of bonds to boost liquidity, says B. Prasanna of ICICI

Live Mint  

The Reserve Bank of India may buy nearly $18 billion of government bonds to replenish banking liquidity that’s expected to tighten later in the year, according to a report by Bloomberg. The central bank may cut the cash reserve ratio by half a point in the second half of the fiscal and start buying bonds in the December quarter to …

Lessons from the US bank crisis
2 years ago

Lessons from the US bank crisis

Hindustan Times  

Last week ended with the United States Federal Reserve raising interest rates by 25 basis points once again, taking the cumulative rate increase to 4.75 percentage points in the current cycle. Had the latest federal open market committee meeting not been preceded by two bank failures and the possibility of a crisis in many others, the rate hike would have …

Monetary Policy will be watched for liquidity guidance
2 years, 6 months ago

Monetary Policy will be watched for liquidity guidance

Live Mint  

Of late, Indian fixed income markets are witnessing heightened nervousness due to many factors. The banking system’s liquidity slipped into deficit after 40 months on 21 September, led by advance tax outflows for the second quarter and payments for government bonds. Out of the total gross borrowings of ₹14.31 trillion, the government raised ₹7.72 trillion smoothly until 16 September, thanks …

RBI likely to keep key rates steady, liquidity steps eyed
3 years, 9 months ago

RBI likely to keep key rates steady, liquidity steps eyed

India Today  

India's central bank will likely keep interest rates at record lows this week as it assesses the economic fallout of the country's evolving COVID-19 crisis, but the monetary authority is expected to reiterate its commitment on liquidity. The Reserve Bank of India's monetary policy committee will likely keep the key lending rate or the repo rate unchanged at 4% for …

RBI may have to delay liquidity normalisation amid rising virus cases
4 years ago

RBI may have to delay liquidity normalisation amid rising virus cases

Live Mint  

India's central bank may have to delay the start of monetary policy normalisation by three months amid rising COVID-19 cases, but barring the return of stringent lockdowns there is no significant threat to the economy's recovery, analysts say. India needs to take quick and decisive steps soon to stop an emerging second "peak" of COVID-19 infections, Prime Minister Narendra Modi …

RBI may consider issuing bonds to help soak up foreign money into stocks
4 years ago

RBI may consider issuing bonds to help soak up foreign money into stocks

Live Mint  

The Reserve Bank of India may consider issuing its own bonds to help soak up a deluge of foreign money into stocks that threatens financial stability, according to a report published by its researchers. “Enhancement of sterilization capacity may be necessary to deal with possible surges in capital flows in the future.” The RBI report recommended further strengthening foreign-exchange reserves, …

Bond turmoil on India’s cash drain shows market fragility
4 years, 2 months ago

Bond turmoil on India’s cash drain shows market fragility

Live Mint  

The Reserve Bank of India’s first steps to revive money-market rates proved how fragile sentiment remains, as a spike in bond yields spurred policy makers to announce more buying to quell the turbulence and protect the economy’s nascent recovery. The central bank’s first 14-day reverse-repurchase operation since March saw rates on short-dated sovereign bonds rise as much as 33 basis …

RBI said to assure bond investors over its easy monetary stance
4 years, 2 months ago

RBI said to assure bond investors over its easy monetary stance

Live Mint  

The Reserve Bank of India told bond market participants a recent measure to mop up excess liquidity isn’t a step toward changing its accommodative policy, according to people with knowledge of the matter. Setting the policy stance is the remit of the rate-setting panel, and the central bank’s plan to drain cash was just to modulate liquidity as it gradually …

Treasury bill yields rise in India after RBI’s cash move
4 years, 2 months ago

Treasury bill yields rise in India after RBI’s cash move

Live Mint  

India’s Treasury bill yields rose at an auction after the central bank took the first step toward paring back on some of its pandemic relief measures. The 190 billion rupees sale was the first sovereign auction since the Reserve Bank of India said late on Friday it plans to drain cash via a reverse repo operation. “After today’s T-bill auction, …

Traders see cash tightening in India to drive bond playbook
4 years, 2 months ago

Traders see cash tightening in India to drive bond playbook

Live Mint  

India’s sovereign bond investors are converging on a trade idea for 2021. RBL Bank Ltd. and Quantum Asset Management Ltd. are among those forecasting that liquidity tightening by the Reserve Bank of India will lead short-end rates to rise faster than the long-end -- bear-flattening the yield curve. “Short-end rates, of up to three years maturity, are currently priced aggressively …

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