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India Gazette
04-07-2025
- Business
- India Gazette
RBI notifies underwriting auction for Rs 32,000 crore Government Securities
Mumbai (Maharashtra) [India], July 4 (ANI): The Reserve Bank of India (RBI) has announced an underwriting auction for the sale of government securities worth Rs 32,000 crore on Friday. The auction will cover both issue of new government security and the re-issue of an existing one. 'The underwriting auction will be conducted through multiple price-based method on July 04, 2025 (Friday). PDs may submit their bids for ACU auction electronically through Core Banking Solution (E-Kuber) System,' the RBI said. The securities include a new Government Security (GS) maturing in 2040 and a re-issue of the 6.90 per cent GS maturing in 2065, each carrying a notified amount of Rs 16,000 crore. These bonds will be sold through a competitive bidding process involving Primary Dealers (PDs). In simple terms, an underwriting auction is conducted by the RBI to ensure that the full amount of government bonds being issued is subscribed, even if market demand is uncertain. Primary Dealers act as underwriters in this process, they commit to purchasing any unsold portion of the bonds. This mechanism helps the government raise funds smoothly for its expenditure needs. As per the RBI's underwriting commitment scheme, each PD has a Minimum Underwriting Commitment (MUC) of Rs 381 crore for each of the two securities. They are also required to place bids for at least Rs 381 crore under the Additional Competitive Underwriting (ACU) auction. The auction will follow a multiple price-based method and will be held through the RBI's E-Kuber system. The underwriting commission, or fee paid to PDs for their commitment, will be credited to their accounts on the day the securities are issued. This auction is part of the government's regular borrowing program and highlights the RBI's role in facilitating smooth debt market operations. (ANI)
Economic Times
02-07-2025
- Business
- Economic Times
Call money market sees Rs 3,000 crore surge in volumes as extended trading hours begin
The extension of the market hours is in sync with the increasing size of different domestic markets and increase in the number of participants. The call money market witnessed a surge in volumes by ₹3,000 crore, reaching ₹16,015 crore, following the extension of trading hours until 7 pm. Public sector banks and primary dealers actively participated, contributing to the increased activity. This extension aims to boost overnight money market trading and discourage parking funds in the standing deposit facility. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Volumes in the call money market increased by ₹3,000 crore on the first day of the extended business hours on Tuesday. Trade volumes were at ₹16,015 crore on Tuesday, up from ₹13,225 crore on Monday, CCIL data July 1, the call money market stayed open for trading up to 7 pm for the first time with major participation by public sector banks and primary dealers (PDs). The weighted average call rate (WACR) was at 5.31% on Tuesday. The WACR stood at 5.50% on Monday due to quarter end demand, a money market trader with a private sector bank rationale to extend timing by two hours was to attract trading in the overnight money market and discourage market participants from parking surplus funds in the standing deposit facility (SDF) which remained open till 11.59 SDF, banks can park funds with RBI at 5.25% thus giving them a window to park the surplus post 5.00 pm. Currently, the SDF window operates from 7 pm to 11.59 pm."Participation by PDs has gone up in the call market after the RBI stopped doing variable rate repo (VRR) operations, where PDs were active participants. Major lenders were public sector banks," a money market trader extension of the market hours is in sync with the increasing size of different domestic markets and increase in the number of central bank took the decision after examining the recommendations by a working group set up in February, which reviewed the trading and settlement timings of financial markets.
Time of India
02-07-2025
- Business
- Time of India
Call money market sees Rs 3,000 crore surge in volumes as extended trading hours begin
Mumbai: Volumes in the call money market increased by ₹3,000 crore on the first day of the extended business hours on Tuesday. Trade volumes were at ₹16,015 crore on Tuesday, up from ₹13,225 crore on Monday, CCIL data showed. On July 1, the call money market stayed open for trading up to 7 pm for the first time with major participation by public sector banks and primary dealers (PDs). The weighted average call rate (WACR) was at 5.31% on Tuesday. The WACR stood at 5.50% on Monday due to quarter end demand, a money market trader with a private sector bank said. The rationale to extend timing by two hours was to attract trading in the overnight money market and discourage market participants from parking surplus funds in the standing deposit facility (SDF) which remained open till 11.59 pm. Bonds Corner Powered By Call money market sees Rs 3,000 crore surge in volumes as extended trading hours begin The call money market witnessed a surge in volumes by ₹3,000 crore, reaching ₹16,015 crore, following the extension of trading hours until 7 pm. Public sector banks and primary dealers actively participated, contributing to the increased activity. This extension aims to boost overnight money market trading and discourage parking funds in the standing deposit facility. Tariffs, Deficits, and Yields: How Trump's policies are reshaping global bond markets Adani Enterprises to sell bonds with 2-5 year maturity, aims to raise Rs 1,000 crore: Report Indian bonds post biggest monthly dip since April 2024 on change in RBI policy stance Bond rally cools just as another index inclusion nears Browse all Bonds News with Under SDF, banks can park funds with RBI at 5.25% thus giving them a window to park the surplus post 5.00 pm. Currently, the SDF window operates from 7 pm to 11.59 pm. "Participation by PDs has gone up in the call market after the RBI stopped doing variable rate repo (VRR) operations, where PDs were active participants. Major lenders were public sector banks," a money market trader said. Live Events The extension of the market hours is in sync with the increasing size of different domestic markets and increase in the number of participants. The central bank took the decision after examining the recommendations by a working group set up in February, which reviewed the trading and settlement timings of financial markets.
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Business Standard
25-04-2025
- Business
- Business Standard
Pahalgam terror attack: Rupee, bond weaken on rising India-Pak tension
The rupee settled 0.2 per cent weaker against the US dollar after a choppy trade due to month-end demand for dollars, said dealers. The rising tension between India and Pakistan further weighed on the local currency. The rupee settled at 85.45 per dollar on Friday, against the previous close of Rs 85.27 per dollar. It depreciated up to 85.67 against the dollar during the day. 'The rupee opened with a gap but there is resistance around the 85 per dollar level,' said a dealer at a state-owned bank. 'There was month-end dollar demand and also caution because of what is happening in Kashmir,' he added. The domestic unit has appreciated by 0.19 per cent in the current calendar year so far. It has witnessed 0.02 per cent appreciation in April so far. On the other hand, the yield on the benchmark 10-year government bond inched up by 5 basis points as traders lightened their position ahead of the weekend, said dealers. Foreign banks and primary dealers sold bonds at a profit, which further aided the yields. The benchmark yield settled at 6.36 per cent on Friday, against the previous close of 6.32 per cent. Some dealers said that the bond market was also cautious because of escalating tension in Kashmir. 'There was some profit booking, foreign banks and PDs were on the selling side, and PSU banks were on the buying side,' said a dealer at a primary dealership. 'People also lightened their positions ahead of the weekend, because of the tension between Pakistan and India as we do not know what might unfold during the weekend,' he added. After witnessing a continuous fall in yields post the Reserve Bank of India 's Monetary Policy Committee meeting outcome, government bond yields hardened during the week due to technical resistance and outflows from the debt segment. The total foreign portfolio investment in Indian government securities designated under the Fully Accessible Route (FAR) stood at Rs 2.96 trillion as of Friday, against Rs 3 trillion at the end of March of the current year, according to data by Clearing Corporation of India (CCIL). Foreign investors have net sold Rs 10,234 crore worth of domestic debt in April so far, as the yield spread between the 10-year US Treasury bond and the domestic benchmark 10-year bond narrowed to 190 basis points, the lowest since October 2004.
