Friday, March 29, 2024
Home News RBI rejects bids for shortest tenure T-bill

RBI rejects bids for shortest tenure T-bill

RBI,

Mumbai :

In a Wednesday auction for 91-day Treasury Bills, the Reserve Bank of India rejected all bids, indicating its concern about higher short-term rates. Since February 24, 2016, this is the first instance of its kind.

The RBI intended to market Rs-worth of 91-day T-bills. 9,000 billion. Traders believe that this move by the central bank reflects the system’s short-term liquidity crunch.

The system has a liquidity crunch of approximately. According to RBI data as of Tuesday, 1.48 trillion. Outflows related to the payment of advance taxes and the Goods and Services Tax (GST), which had an effect on the liquidity of banks, were primarily to blame for the tightening of liquidity.

The yield on the 91-day bill was set at 6.73 percent at the most recent T-bill auction. Due to the March factor, the market expectation this time was between 7.15 and 7.20 percent, so bids must have been placed around that. Gopal Tripathi, president and head of capital markets at Jana Small Finance Bank, stated, “The RBI must have thought it was too high and decided to cancel.”

Following the auction’s results, yields on smaller bonds decreased. The yield on the five-year note was 7.18%, down three basis points. According to the statement, the RBI sold 14,000 crore bills for 364 days at 7.3064% and 16,000 crore bills for 182-days at 7.280%.

According to traders, the cash crunch is expected to last for the next few days. In April, Targeted Long Term Repo Operations (TLTRO) brought in 61,131 crore.

The Reserve Bank of India (RBI) announced on Wednesday that it had provided additional cash to address the cash shortage. 5,000 crore in accordance with the Standing Liquidity Facility

“The Reserve Bank of India has decided to provide standalone primary dealers with an additional Rs 5,000 crore under the Standing Liquidity Facility at the repo rate in effect on March 31, 2023.”

According to the RBI, the special dispensation funds must be repaid by April 5, 2023, or earlier.

RELATED ARTICLES

Markets end FY23 in style; Sensex Nifty rally nearly 2% on firm global trends

Market, The final day of the fiscal year 2022-23 saw gains for benchmark indices, with a gain of nearly 2% on Friday, extending gains for...

Day trading guide for today: 6 stocks to buy or sell on Friday — 31st March

Trading, Day trading guide for today: Indian shares gained on Wednesday as global markets' increased risk appetite was aided by easing in the banking industry....

Financial, IT stocks aid Indian shares snap three-month losing streak

Financial, By Bharat Rajeshwaran BENGALURU (Reuters) - Indian shares rose on Friday, supported by a higher weighting of financial stocks and information technology (IT) stocks,...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

SIGNUP & GET $10000 BONUS

Most Popular

Trading the Inside Bar Pattern on Pocket Option Platform

Inside Bar Pattern Introduction Price movement on a chart is examined in price action trading. You may use candlesticks to predict where prices will move...

“Unlocking the Secrets: 4 Tricks of Successful Traders on Pocket Option Platform”

For a year, I have been trading on the Pocket Option platform. I sometimes succeed and sometimes fail. However, I was confident that if...

Identifying Mistakes That Lead to Losses on Pocket Option

Why do people lose their money when trading binary options New traders frequently take a significant financial risk while trading binary options. As a result,...

Weekly Income Plan on Pocket Option Platform”

Get weekly returns on Pocket Option It turned out that October was a terrific month for me. I am still able to generate money every...

Recent Comments