Free Trial

Signs Of Normalisation On Horizon

INDIA

Bonds fell yesterday after the RBI conducted its 7-day reverse repo at 3.99%, 57bps above the previous operation and just shy of the RBI's main benchmark policy rate of 4.00%. The operation caused speculation that the Central Bank is embarking on a path to normalisation earlier than expected. The liquidity drain at a higher rate comes hot on the heels of the RBI's decision to make its GSAP operations neutral by including an equivalent sell leg to the auctions. Market participants await today's T-Bill auction to assess cut off yields for further signs of policy tightening from the RBI.

To read the full story

Close

Why 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.