Expectations that revenue from India's auction of third generation (3G) mobile licences will exceed targets has sparked hopes among bond investors that the government will curtail borrowing in the first half of the year.
Though it is too early for the government or the central bank to decide whether to postpone any scheduled bond auction, bond yields may fall by 10 basis points if there is any such surprise announcement and flatten the yield curve, dealers said.
The government is scheduled to borrow 2.87 trillion rupees ($64.3 billion) during the first half the fiscal year that began April 1 out of a total 4.57 trillion rupees for the full year, a record haul that has fatigued investors and sent yield on the 10-year bond above 8 percent.
"If the government is able to raise a higher amount of funds through 3G, then it may afford to skip one auction or postpone it," said Ananth Narayan G, head of rates and credit for
The government expects to generate around 500 billion rupees ($11.2 billion) from the 3G auction, far ahead of its budgeted estimate of 350 billion rupees.
"The market has accounted for a lot of bearishness. So such news will obviously be a good news and bonds will rally," Ananth Narayan said.
However, if a one-time outflow of 500 billion rupees to pay the government for 3G licences coincides with advance tax payments due in June, it may cause a severe strain on liquidity and send overnight rates sharply higher from existing levels.
A hefty redemption of around 340 billion rupees of bonds in May and June may ease the shock.
Wednesday, April 28, 2010
3G sale sparks govt borrowing breather hopes
Industry Research Reports
LIC Term Insurance or Pvt Life Insurance Term Plan ? Which is the best term insurance in India ? Which Insurance company has the best cla...
આજકાલ કોઈપણ સમસ્યા હોય લોકો એન્ટિબાયોટિક્સ અંગ્રેજી દવાઓ લેવાનું વધુ પસંદ કરતાં હોય છે કારણ કે આજની પેઢીને આપણા જુનવાણી નુસખા વિશે જાણ હોત...
http://www.livemint.com/2007/12/13162756/SBI-UTI-MFs-to-manage-post-of.html New Delhi: Government has appointed PSU mutual funds UTI MF a...
સુરતી લોચો બનાવવાની રીત Surati Locho - સુરતી લોચો લોચો એ ગુજરાતની સૌથી સ્વાદિષ્ટ ચટપટી ખાવાની ચીજો પૈકીની એક ચીજ છે. લોચો બનાવવાની ...
i-Develop Multibagger Stock Performance last year Enter Date Exit Date Bse Code Scri...
NTPC and RIL are fighting a case in the Bombay High Court over gas pricing for the former's Kawas and Gandar power plants....
Global private equity giant The Blackstone Group has announced that it has bought a majority stake in CMS Computers Ltd. Black...
નવાઝ શરીફ સાથે મુલાકાત બપોરે પાકિસ્તાનના વડાપ્રધાન નવાઝ શરીફ અને નરેન્દ્ર મોદી વચ્ચે વાતચીત થઈ ગઈ હતી. બંને નેતાએ લગભગ 26 સેકન્ડ સુધી ...