FIIs bid 32% more than the $10 billion debt offered for auction, raising hopes of reprieve for sliding rupee.
JP Morgan Asset Management India is bullish on stocks of private sector banks that are better placed than their public sector peers in terms of asset quality.
This could raise the funding costs for power companies, which are already facing many obstacles such as high cost of fuel and inability to buy land.
Some analysts, traders & economists take a u-turn and ask for just one more rate hike next week, but some say RBI could continue with the bias.
The 10-year benchmark government bond yields rose to a three-year high after investors declined to buy government bonds at last week's auction.
According to bankers, the borrowing cost for corporates has risen by 250 basis points over the past two months.
Banks borrow from central bank and invest in higher yielding short-term instruments like one-month certificate of deposits.
Certificate of deposits or CDs are losing their sheen as investors and other financial institutions are not finding these short-term instruments attractive.
Banks have sought more time from the RBI to operationalise the final guidelines on selling structured products to corporates as clients take a longer time to comply with the central bank’s requirements.
MUMBAI Banks are finding a unique arbitrage opportunity between the repo and the certificate of deposits, or CD, markets.
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