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Sep 26, 2013

Bonds gain after RBI assures will ensure cash

MUMBAI (Reuters) – Government bonds rose on Thursday after the Reserve Bank of India (RBI0 assured markets it would ensure adequate cash and also buy debt via open market operations if needed.

The RBI’s comments, announced after trading hours on Wednesday, came as yields had risen by 60 basis points (bps) after a surprise hike in the repo rate on Friday and on worries about the fiscal second borrowing programme of the government.

Sep 26, 2013

Indian bonds gain after RBI assures will ensure cash

MUMBAI, Sept 26 (Reuters) – Indian government bonds rose on
Thursday after the central bank assured markets it would ensure
adequate cash and also buy debt via open market operations if
needed.

The Reserve Bank of India’s comments, announced after
trading hours on Wednesday, came as yields had risen by 60 basis
points (bps) after a surprise hike in the repo rate on Friday
and on worries about the fiscal second borrowing programme of
the government.

Sep 26, 2013

As rupee hits hard times India cajoles, woos offshore currency players

HONG KONG/MUMBAI, Sept 26 (Reuters) – Stung by the rupee’s
recent collapse, India’s central bank is taking a
carrot-and-stick approach to curb trade in the offshore forwards
market that is seen as a key source of wrenching currency
volatility.

However, with no viable alternative to trading in
non-deliverable forwards (NDF) involving the rupee, the strategy
is likely to have only a limited impact.

Sep 25, 2013

Indian bonds gain as investors find yields attractive

MUMBAI, Sept 25 (Reuters) – Indian government bonds rose on
Wednesday as investors found the sudden rise in yields
attractive, though the absence of an open market purchase of
debt by the central bank dampened sentiment.

Yields have risen 60 basis points since the central bank
surprised markets with an increase in the repo rate on Friday,
and did not rule out the possibility of further hikes if
inflation continued to remain high.

Sep 24, 2013

Indian bonds gain after government sticks to borrowing plan

MUMBAI, Sept 24 (Reuters) – Indian federal bonds rose on
Tuesday after the government said it will stick to its fiscal
second-half borrowing, though they gave up most of the gains
after a move to keep any diesel price hike at bay was seen as
hurting reforms.

The government will borrow 2.35 trillion rupees in
October-March as part of its overall 5.79-trillion-rupee
borrowing programme for 2013/14, it said after trading hours on
Monday.

Sep 23, 2013

India bond yields at near 4-week high on poor auction demand

MUMBAI, Sept 23 (Reuters) – Indian federal bond yields rose
to a near four-week high on Monday after a large portion of a
debt sale had to be picked up by underwriters, signalling poor
demand after the surprise hike in the repo rate on Friday.

The 25 basis point hike in the repo rate and a tough
anti-inflationary stance from the new central bank governor
Raghuram Rajan have queered the pitch for bond dealers. Yields
have risen 66 bps in the two trading sessions through Monday.

Sep 23, 2013

India bond yields at 3-week high ahead of auction, FY2H borrowing

MUMBAI, Sept 23 (Reuters) – Indian federal bond yields rose
to a three-week high on Monday as dealers anticipated poor
demand at a debt sale and ahead of the fiscal second half
borrowing calendar.

A surprise hike in the repo rate and a tough
anti-inflationary stance from the new central bank governor
Raghuram Rajan have queered the pitch for bond dealers. Yields
rose 39 basis points on Friday after the rate hike.

Sep 20, 2013

Rupee, bonds fall after RBI surprises with repo rate increase

MUMBAI (Reuters) – The rupee fell and bond yields surged after the Reserve Bank of India (RBI) surprised markets with an increase in the repo rate on Friday, putting its focus squarely back on managing inflation and the fiscal deficit.

The RBI provided some reprieve to the bond market by unwinding some of the cash tightening steps undertaken since mid-July.

Sep 20, 2013

India rupee, bonds fall after RBI surprises with repo rate increase

MUMBAI, Sept 20 (Reuters) – The Indian rupee fell and bond
yields surged after the central bank surprised markets with an
increase in the repo rate on Friday, putting its focus squarely
back on managing inflation and the fiscal deficit.

The Reserve Bank of India provided some reprieve to the bond
market by unwinding some of the cash tightening steps undertaken
since mid-July.

Sep 19, 2013

Indian rupee rallies to near 5-week high; Fed move seen helping RBI policy

MUMBAI, Sept 19 (Reuters) – The Indian rupee surged 2.6
percent on Thursday, hitting its highest in nearly five weeks,
as the U.S. Federal Reserve’s decision not to dial back its easy
money policy is expected to provide a reprieve to the local
central bank in its policy making.

The rupee, which was among the top winners in Asia
after the Fed move, and the Indonesian rupiah stand to
gain the most if foreign funds return to riskier assets in the
wake of the Fed’s surprise decision. Both bore the brunt of the
recent sell-off in emerging market currencies since the Fed bank
signalled in May that it may begin tapering stimulus this year.