- PolicyPolicy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: - G10 MarketsG10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI Podcasts - Emerging MarketsEmerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
- CommoditiesCommodities
Real-time insight of oil & gas markets
- Data
- MNI ResearchMNI Research
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
- About Us
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessRBI Soothes Issuance Worries
Bonds are expected to be supported today by a number of factors including the GSAP announcement and borrowing plan. The short end in particular is expected to be supported after the RBI kept the borrowing programme for the first half of fiscal 2022, the FinMin had said in May that borrowing would be increased in order to provide support funds to states. Instead, the government released INR 750bn from its own borrowings to compensate for a tax revenue shortfall.
- The Central Bank announced eligible issues for the next GSAP operations yesterday, the RBI will purchase INR 200bn on July 22 and this time has included illiquid paper, a major criticism of the previous operations. Purchases will be from 6.18% 2024, 6.97% 2026, 8.20% 2028, and 6.79% 2029 issues, which combined have accounted for around 10% of trading volume this week.
- Elsewhere, the latest RBI bulletin was upbeat on the economy: "The tapering of the second wave, coupled with an aggressive vaccination push, has brightened near-term prospects for the Indian economy. While several high frequency indicators of activity are recovering, a solid increase in aggregate demand is yet to take shape. On the supply side, agricultural conditions are turning buoyant with the revival in the monsoon, but the recovery of manufacturing and services sectors has been interrupted by the second wave. A pick-up in inflation is driven largely by adverse supply shocks and sector-specific demand-supply mismatches caused by the pandemic. These factors should ease over the year as supply side measures take effect."
- As a reminder RBI will sell INR 320bn of debt at auction and conduct INR 200bn of 14-day reverse repos today.
To read the full story
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.