Tighter cash conditions in India's banking system have pushed up short-term borrowing rates, prompting the Reserve Bank of India (RBI) to inject funds into banks, according to an ICICI Bank report. Surplus liquidity fell sharply to Rs 50,000 crore, or 0.2% of net demand and time liabilities (NDTL), as of October 23, mainly due to GST payments and higher cash reserve requirements. The RBI has started variable-rate repo (VRR) auctions, including a seven-day operation worth Rs 1 lakh crore. The weekly average call rate rose to 5.70% from 5.48%, and the average market repo rate climbed to 5.66% from 5.37%. Rising oil prices amid the conflict in West Asia are adding pressure on government bond yields, and ICICI Bank expects the 10-year yield to trade between 7.40% and 7.60% in the near term.
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- RBI steps up liquidity support as tighter cash conditions push up borrowing rates : Report
An ICICI Bank report says the banking system's surplus liquidity fell sharply due to GST payments and higher cash reserve requirements, leaving a surplus of Rs 50,000 crore (0.2% of NDTL) as of October 23. The RBI has begun variable-rate repo (VRR) auctions, including a seven-day operation worth Rs 1 lakh crore. The weekly average call rate rose to 5.70% from 5.48%, and the market repo rate to 5.66% from 5.37%. At the government securities auction, the average borrowing cost rose 20 basis points to 7.60%, while rising oil prices amid the West Asia conflict raise inflation concerns. ICICI Bank expects the 10-year benchmark yield to trade between 7.40% and 7.60% in the near term.
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- RBI accepts no bids in treasury bill auction, 10-Year bond yield climbs to 7.44%
The Reserve Bank of India (RBI) on Wednesday accepted no bids at its auction of 91-day, 182-day and 364-day Treasury bills, even though competitive bids exceeded the notified amounts for all three maturities. The central bank had notified Rs 23,000 crore in total, yet received 67 competitive bids worth Rs 15,366.60 crore for 91-day bills, 63 bids worth Rs 18,925.50 crore for 182-day bills and 75 bids worth Rs 11,352.50 crore for 364-day bills. No non-competitive bids were accepted either, and the results gave no reason for the absence of allotments. Meanwhile, the benchmark 10-year government bond yield rose about four basis points to around 7.44%, up roughly 40 basis points over the past month and 90 basis points over the past year.
- RBI accepts no bids in treasury bill auction, 10-Year bond yield climbs to 7.44%
The Reserve Bank of India (RBI) accepted no bids at its auction of 91-day, 182-day and 364-day Treasury bills, with a total notified amount of Rs 23,000 crore, even though it received competitive bids above the notified amounts for all three maturities: 67 bids worth Rs 15,366.60 crore for 91-day bills, 63 bids worth Rs 18,925.50 crore for 182-day bills, and 75 bids worth Rs 11,352.50 crore for 364-day bills. No non-competitive bids were accepted either, and the results gave no cut-off or weighted average yields and no reason for the absence of allotments. The auction came as the yield on India's 10-year government bond rose about four basis points to around 7.44%, up roughly 40 basis points over the past month and about 90 basis points over the past year.
- RBI accepts no bids in treasury bill auction , 10 - Year bond yield climbs to 7 . 44 %
The Reserve Bank of India (RBI) accepted no bids at its Wednesday auction of 91-day, 182-day and 364-day Treasury bills, even though competitive bids exceeded the notified amounts across all three maturities. The notified total was Rs 23,000 crore, yet no competitive or non-competitive bids were accepted, and no cut-off or weighted average yields were reported. Meanwhile, the 10-year government bond yield rose to around 7.44%, about 4 basis points higher than the previous session, and has climbed roughly 40 basis points over the past month and 90 basis points over the past year. The RBI did not specify a reason for the absence of allotments.
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