Mumbai: Indian Personal Area banks Biggest single-season draw Purchase The figures also included a major investment by a corporate in seven-year government bonds on Friday, traders said.
How much worth of bonds did these banks buy? Net The purchase of Rs 8,343 crore ($1 billion) is the biggest since November 15, 2016, according to Clearing Corp of India data. With this, total purchases in November reached above Rs 20,000 crore after net sales of Rs 10,100 crore in October.
Traders said a large corporate may have bought benchmark paper worth about Rs 5,000 crore through a private sector bank.
A senior treasury official at a private bank said, “Although Friday’s purchases include purchases for constituent clients, private banks are increasing purchases for their books as they have a large portion of maturing papers, and this The money needs to be deployed.” , There is going to be an inflow of around Rs 1.7 lakh crore in the next one month as 8.83% 2023, 4.56% 2023 and 7.68% 2023 papers mature. Another Treasury official said most of the money is reinvested in liquid papers, including five-year and benchmark 10-year papers. Improving macroeconomic conditions are also boosting bond buying.
“US data is starting to take a toll and Treasury yields have come down, suggesting the rate cycle has peaked,” said Alok Singh, group treasury head at CSB Bank.
Singh said, this is also increasing the business activities of private banks. US 10-year yields have fallen more than 55 basis points to around 4.45% in November. Traders also said expectations of debt sales from RBI have eased due to liquidity crunch, which improved buying sentiment.
How much worth of bonds did these banks buy? Net The purchase of Rs 8,343 crore ($1 billion) is the biggest since November 15, 2016, according to Clearing Corp of India data. With this, total purchases in November reached above Rs 20,000 crore after net sales of Rs 10,100 crore in October.
Traders said a large corporate may have bought benchmark paper worth about Rs 5,000 crore through a private sector bank.
A senior treasury official at a private bank said, “Although Friday’s purchases include purchases for constituent clients, private banks are increasing purchases for their books as they have a large portion of maturing papers, and this The money needs to be deployed.” , There is going to be an inflow of around Rs 1.7 lakh crore in the next one month as 8.83% 2023, 4.56% 2023 and 7.68% 2023 papers mature. Another Treasury official said most of the money is reinvested in liquid papers, including five-year and benchmark 10-year papers. Improving macroeconomic conditions are also boosting bond buying.
“US data is starting to take a toll and Treasury yields have come down, suggesting the rate cycle has peaked,” said Alok Singh, group treasury head at CSB Bank.
Singh said, this is also increasing the business activities of private banks. US 10-year yields have fallen more than 55 basis points to around 4.45% in November. Traders also said expectations of debt sales from RBI have eased due to liquidity crunch, which improved buying sentiment.