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Keeping the Rupee Competitive

In 2007, the rupee appreciated by as much as 12 per cent against the dollar, leading to an adverse effect on exports, investment proposals and employment - the policy was perhaps to use an appreciating rupee to fight inflation. While letting the rupee rise was a reversal of long-standing policy, the Reserve Bank of India has now restored the earlier approach. In spite of the acceleration in inflation since January 2008 the rupee has depreciated by as much as 7.5 per cent against the dollar so far in the current calendar year. India cannot be aggressive like China in undervaluing its currency. However, it is necessary to moderately undervalue the rupee in order to aid exports.

MONEY MARKET REVIEWjune 21, 2008 EPW Economic & Political Weekly32Keeping the Rupee CompetitiveEPW Research FoundationIn 2007, the rupee appreciated by as much as 12 per cent against the dollar, leading to an adverse effect on exports, investment proposals and employment – the policy was perhaps to use an appreciating rupee to fight inflation. While letting the rupee rise was a reversal of long-standing policy, the Reserve Bank of India has now restored the earlier approach. In spite of the acceleration in inflation since January 2008 the rupee has depreciated by as much as 7.5 per cent against the dollar so far in the current calendar year. India cannot be aggressive like China in undervaluing its currency. However, it is necessary to moderately undervalue the rupee in order to aid exports.It is an essential element of the exchange rate policy that the one-way expectations of the rupee’s movements should not be allowed to prevail as it leads to unhedged exposures as well as encourages specula-tive activities. Such kind of shock therapy ensures that there is an effective curb on speculative activities as well as the move-ments are as per the desired pace in the short-term. Earlier, in response to the similar built-up of expectations of uncon-strained appreciation of the rupee in 2002-03, theRBI made its intentions clear in its annual policy statement on April 29, 2003, “RBI is not in favour of increasing the unhedged borrowings by corporate, and short-term forex liabilities of banks in order to meet the demand for borrowed dollars that is arising from expectations regarding future movements in dollar-rupee exchange rate”; the RBI has further said that unidirectional movements should not be assumed. Even in the present circumstances, the market has been sufficiently warned not to expect undiluted stability, that is, two-way movements should be considered as a part of a market determined exchange rate policy with appropriate checks and balances. Such two-way movements occurring in an unexpected way is the best way of preventing speculation based on steady movements.Piyusha Hukeri drafted the initial note and V P Prasanth compiled the accompanying tables and graphs.With inflation accelerating, there has been a build-up of expecta-tion that the Reserve Bank of India (RBI) would allow the rupee to appreciate. Inflation, mainly driven by global factors such as high energy as well as commodity and food prices, has remained unabated; it has crossed 8 per cent and threatened to touch 10 per cent in the near future despite various supply augmenting, fiscal and monetary measures. 1 A Reversal of PolicyAgainst such a situation in 2007-08, the authorities had resorted to a major policy reversal and allowed the rupee to appreci-ate as a fight against inflation; the rupee did begin appreciating in the early part of 2007-08 and there was a 12 per cent rise during 2007-08 against the US dollar and 9 per cent in real effective terms against the basket of major currencies.But now, the RBI has allowed the under-lying demand and supply situation to influence the exchange rate movement and has sought to thwart market expecta-tions. In a major reversal of the trends, the rupee-dollar exchange rate has begun to depreciate gradually since the beginning of 2008-09 and precisely when the threat of higher inflation became more glaring the value of the rupee has dipped rather sharply and suddenly, in the first fortnight of May, it slipped from Rs 40.65 on May 2 to Rs 43.15 on May 22, a fall of about Rs 2.5 in a short span of just 15 working days. Though there has been some correction towards the end of May, it has again fallen to Rs 42.87 on June 13. As a result, there has been a huge unwinding of forward posi-tions taken in view of the continued appre-ciation of the rupee. Evidence of it is in the data published by the Clearing Corpora-tion of India (CCIL): the settlement turn-over in forward trades had risen from $ 91 billion in February 2008 to $ 137 billion in March and $ 119 billion in April which has fallen rather sharply to $ 71 billion in May. Table 1: Nominal and Real Effective Exchange Rate of the Indian Rupee (Trade Based Weights) Base : 1993-94 (Apr-Mar) = 100Year/Month 6-Curency Weights 36-Curency Weights NEERREERNEERREER1993-94 100.00 100.00 100.00100.001994-95 96.96 105.82 98.91 104.321995-96 88.56101.2791.5498.191996-97 86.85101.1189.2796.831997-98 87.94 104.4192.04 100.771998-99 77.49 96.14 89.05 93.041999-2000 77.16 97.69 91.02 95.992000-01 77.43 102.82 92.12 100.092001-02 76.04 102.7191.58 100.862002-03 71.27 97.68 89.12 98.182003-04 69.97 99.17 87.14 99.562004-05 69.58 101.78 87.31 100.092005-06 72.28107.3089.85102.352006-07(P) 68.93105.47 85.89 98.512007-08(P) 74.13114.73 92.97106.17NEER : Nominal Effective Exchange Rate. REER : Real Effective Exchange Rate. P : Provisional. Rise in indices indicates appreciation of the rupee and vice versa.
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MONEY MARKET REVIEWjune 21, 2008 EPW Economic & Political Weekly34Table 5: Comparison of Call, Overnight CBLO and Repo RatesWeek Ending Weighted Average Rates (in %) Daily Average Volumes (Rs Crore) Call Overnight CBLO Repo Call Overnight CBLO Repo 4-Apr-08 6.995.466.50 9623 33699 956711-Apr-08 5.61 3.48 4.28 7540 37999 1740817-Apr-08 6.14 6.00 6.0910998 35382 1235725-Apr-08 6.09 5.40 5.87 12847 38325 158842-May-08 6.15 5.98 6.0913518 40884 147479-May-08 5.97 5.18 5.5510251 38514 1649516-May-08 6.78 6.59 6.67 13281 38333 1610423-May-08 6.09 5.63 5.89 8351 32722 1409030-May-08 7.61 7.36 7.48 13271 38894 14174Source: The Clearing Corporation of India (CCIL).Table 4: Weighted Averages of Daily Call/Notice Rates in Per Cent Per Annum: Simple Statistical Characteristics Month/Week Simple Standard Coefficient of Simple Standard Coefficient of Mean*DeviationVariation Mean* Deviation Variation (in %)$ (in %)$ Call Money Notice Money **April2008 All four weeks 6.22 1.12 18.02 5.43 2.23 41.13 25(RF)* 6.100.345.515.890.7312.38 18 6.150.111.844.192.9069.20 11(RF)*5.310.6311.804.142.3656.96 4 7.501.5220.257.401.3317.97May2008 All five weeks 6.57 0.71 10.76 6.31 0.82 12.96 30 7.630.253.217.260.7810.69 23(RF)*6.050.183.055.840.406.81 16 6.840.527.556.560.8012.14 9 (RF)* 5.97 0.081.425.600.53 9.44 2 6.190.243.956.110.101.70** Separate reportings began on March 15, 2005. * Including data for reporting Fridays (RF). $ Based on original unrounded figures.Source: RBI. injected liquidity through repos, while the reverse repo bids fell rather sharply. Even the short-term rates firmed up. As the limit of FII investments was increased and regu-lations on external commercial borrow-ings (ECBs) were relaxed, the market sentiment improved. 2.1 CallMoney Market Despite outflows towards two tranches of the hike inCRR and a dated securities auc-tion, the short-term rates ruled within the informal corridor set by the reverse repo (6 per cent) and repo rate (7.75 per cent) except for a few days (Table 3). However, there was higher volatility in the call rates in May as compared with that in April (Table 4). The month began with the weighted averages of call rates easing from 6.19 per cent on April 30 to 5.9 per cent on May 2 due to improved liquidity, given the increased government expenditure and coupon and redemption inflows. Despite outflows towards a securities auction on May 8, the overnight rate ruled below the reverse repo rate of 6 per cent at 5.93 per cent. On the first reporting Friday, May 9, the rate slipped further to 5.86 per cent on account of a subdued demand for funds. Following the increase in theCRR mainte-nance, the overnight rates ruled firm at 6.84 per cent on May 10. Thereafter, the rate eased to 6.48 per cent on May 14. Ahead of the holiday-shortened week, there was a surge in demand for funds and the call rate jumped to 7.79 per cent on May 16 even as theRBI injected liquidity through the repo window under LAF. As the liquidity situation improved, the over-night rate again slipped to 5.99 per cent on May 22. Despite the dated securities auction coinciding with reporting Friday, the overnight rate ruled easy at 5.82 per cent on May 23. But, following the second scheduled increase inCRR rate, there was pressure on liquidity, which manifested itself through the sharp jump in the call rates to 7.67 per cent on May 24. Further, in view of the upsurge in global oil prices, there was increased demand for working capital loans from oil companies to pay for imports and this kept prominent lenders such as the public sector banks away from the money mar-ket, which pushed the rates higher to peak at 7.96 per cent on May 30. As per the market share data from CCIL on NDS-Call lending, the share of public sector banks for the week ending May 30 slipped to 56 per cent from 64 per cent in the previous week. But as the pressure eased, the rate dipped to 6.53 per cent on May 31. In the rates in the collateralised segment, the Col-lateralised Borrow-ing and Lending Obligation (CBLO) and repo ruled lower than the un-collateralised call rates and also the volatility was lower in the former segment as compared to the later (Table 5). 2.2 Forex MarketAs referred to above, the rupee-dollar exchange rate depreciated sharply and suddenly in May, as the demand for dol-lars exceeded supply. The unprecedented escalation of global crude oil prices increased demand from oil importing companies while supply remained sub-dued as there were investment outflows due Table 3: Money Market Operations (RBI’s Daily Data) Average May 2008 Average April 2008 Items for Five Weeks 30 23 (RF) 16 9 (RF) 2 for Four Weeks 25 (RF) 18 11 (RF) 4No of working days 28 6 5 6 6 5 21 6 4 6 5CallMoney Weighted average of call rates: 5.82-7.96 7.36-7.96 5.82-6.33 6.46-7.79 5.86-6.11 5.90-6.57 4.11-9.32 5.60-6.63 6.04-6.30 4.11-5.82 5.89-9.32 per cent (weekly range) per annum (5.82) (5.86) (5.60) (4.11)Daily averages (Rupees crore) 9,584 10,998 6,355 11,183 8,219 10,835 8,061 10,819 7,502 6,148 7,494 Total call market borrowings (137) (753) (259) (580)NoticeMoney Weighted average of notice money rates: 5.25-7.95 6.20-7.95 5.25-6.10 5.40-7.75 5.10-6.10 6.05-6.23 3.10-8.50 4.50-6.49 4.50-6.27 3.10-6.05 5.80-8.50 per cent (weekly range) per annum (6.03) (6.00)Daily averages (Rupees crore) 2,208 2,274 1,995 2,098 2,032 2,683 2,151 2,058 3,497 1,394 2,130 Total notice market borrowings (9,363) (12,045) (11,264) (7,893)Turnover in term money market 185 144 488 79 193 47 138 287 60 96 74 (borrowings)$$ (375) (300) (105) (215)*Data for reporting Fridays are given within brackets and they are also included in the weekly range/daily averages. $$ No of reporting/traded days is fewer than given above.
MONEY MARKET REVIEWEconomic & Political Weekly EPW june 21, 200835Table 6: Auctions of 91-Day Treasury Bills(Amount in rupees crore) Date of Notified Bids Tendered Bids Accepted Subscription Cut-off Cut-off AmountAuction AmountDevolvedPriceYieldOutstanding- No Face Value No Face Value on PDs (Rupees) Rate on the Date (Amount) (Amount)(Amount) (in%)ofIssue (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)2007 May 3 2,000.00 54 2,501.03 45 2,000.00 0.00 98.12 7.69 92,986.79 (0) (0.00) (0) (0.00) [98.18] [7.44] May 9 2,000.00 75 4,794.50 47 2,000.00 0.00 98.14 7.60 90,986.79 (0) (0.00) (0) (0.00) [98.17] [7.48] May16 2,000.00 71 4,353.66 36 2,000.00 0.00 98.13 7.64 91,684.35 (3) (1403.00) (3) (1,403.00) [98.14] [7.60] May23 2,000.00 66 5,324.50 45 2,000.00 0.00 98.13 7.64 91,335.35 (5) (1,551.00) (5) (1,551.00) [98.14] [7.60] May30 2,000.00 99 6,333.30 56 2,000.00 0.00 98.19 7.39 88,435.35 (4) (1,350.00) (4)(1,350.00) [98.22] [7.27] 2008 Apr30 3,000 111 7,695.28 52 3,000.00 0.00 98.20 7.35 43,707.00 (0) (0.00) (0) (0.00) [98.21] [7.31] May7 3,000 127 8,457.10 71 3,000.00 0.00 98.21 7.31 45,043.00 (2) (2,635.68) (2)(2,635.68) [98.22] [7.27] May 14 3,500 113 8,527.07 65 3,500.00 0.00 98.19 7.39 47,047.00 (2) (250.50) (2) (250.50) [98.20] [7.35] May21 3,000 86 7,919.91 47 3,000.00 0.00 98.17 7.48 52,197.00 (5) (4,000.00) (5)(4,000.00) [98.18] [7.44] May28 500 41 182.72 21 500.00 0.00 98.17 7.48 51,952.00 (2) (503.48) (2) (503.48) [98.18] [7.44] Figures in parentheses in cols 3 to 6 represent numbers and amounts of non-competitive bids which are not included in the total. Figures in the square brackets under cols 8 and 9 represent weighted average price and respective yield. Table 7: Auctions of 182-Day Treasury Bills(Amount in rupees crore) Date of Notified Bids Tendered Bids Accepted Subscription Cut-off Cut-off AmountAuction AmountDevolvedPriceYieldOutstanding No Face Value No Face Value on PDs (Rupees) Rate on the Date (Amount) (Amount)(Amount) (in%)ofIssue2007 May3 1,500.00 51 3,550.50 151,500.00 0.00 96.29 7.7319,066.67 (1) (126.33) (1) (126.33) [96.31] [7.68] May16 1,500.00 66 3,740.00 211,500.00 0.00 96.28 7.7519,248.67 (0) (0.00) (0) (0.00) [96.29] [7.73] May30 1,500.00 66 4,295.00 431,500.00 0.00 96.34 7.6218,711.44 (1) (235.95) (1) (235.95) [96.39] [7.51] 2008 Apr 30 1,000.00 83 4,430.25 7 1,000.00 0.00 96.42 7.4515,035.00 (1) (750.00) (1)(750.00) [96.43] [7.42] May14 2,000.00 84 3,431.00 602,000.00 0.00 96.36 7.5817,088.00 (1) (553.00) (1) (553.00) [96.38] [7.53] May28 500.00 501,872.00 4 500.00 0.00 96.38 7.5317,788.00 (2) (700.00) (2)(700.00) [96.39] [7.51]Figures in the square brackets represent weighted average price and the respective yield. Figures in brackets represent numbers and amounts of non-competitive bids which are not included in the total.Table 8: Auctions of 364-Day Treasury Bills(Amount in rupees crore) Date of Notified Bids Tendered Bids Accepted Subscription Cut-off Cut-off AmountAuction AmountDevolvedPriceYieldOutstanding No Face Value No Face Value on PDs (Rupees) Rate on the Date (Amount) (Amount)(Amount) (in%)ofIssue2007 May9 2,000.00 64 5,100.00 242,000.00 0.00 92.81 7.77 56,942 (0) (0.00) (0) (0.00) [92.84] [7.73] May23 2,000.00 61 4,211.00 442,000.00 0.00 92.78 7.80 56,292 (0) (0.00) (0) (0.00) [92.81] [7.77] 2008 May 7 3,500.00 165 9,640.50 67 3,500.00 0.00 93.00 7.55 58,925 (1) (650.00) (1) (650.00) [93.05] [7.49] May21 1,000.00 108 4,100.00 411,000.00 0.00 92.90 7.66 59,425 (1)(1,500.00) (1)(1,500.00) [93.01] [7.54] Figures in the square brackets represent weighted average price and the respective yield. Figures in brackets represent numbers and amounts of non-competitive bids which are not included in the total.to increased risk aversion among foreign institutional investors, which was com-pounded by weaknesses in domestic stock markets. Moreover, the arbitrage between the non-delivered forward (NDF) and the domestic market increased the demand for dollars in the local markets. Even the RBI interventions were rather limited dur-ing the month. The foreign currency inflows during the month were at $ 2,547 million as against $ 3,181 million in April. In response to rupee depreciation, the RBI governor said that the situation was reflec-tive of global uncertainties. The finance minister asserted that the rupee would move both ways. The month began with the rupee-dollar exchange rate depreciating rapidly from Rs 40.65 on May 2 to Rs 41.79 on May 8 and then to Rs 42.16 on May 13 reflecting the intense pressure on the rupee to depreciate. But as the global oil prices touched a record high of $ 135 per barrel, the rupee dipped to a low of Rs 43.15 at which point there were reports ofRBI selling dollars to arrest a sharp depreciation. Further, exporters felt that theRBI would not allow the rupee depreciate further and hence began bringing in their receivables. Even the arbitraging between off-shore and on-shore markets helped the rupee to appre-ciate and the rupee rose to Rs 42.56 on May 26. But, as the month-end demand for dollars increased, the rupee slipped to Rs 42.89 on May 27. With the liberlisation of external commercial borrowing (ECB) norms and increased limit on FII invest-ments, the rupee was pushed higher to Rs 42.59 (Graph B, p 33). Among the three tenures, the forward premia at the short-end firmed up as compared to the longer end of three and six months. The one-month premia ruled firm as the banks undertook arbitrage activities in theNDF market as well as importers began covering their expo-sures(Graph C, p 38). 3 PrimaryMarketsYields offered in primary markets gener-ally showed an easing of rates.3.1 Dated Securities In May, the government mobilised an aggregate amount of Rs 20,000 crore in two tranches as per the scheduled calen-dar of issuances. Firstly, on May 9, the government reissued 7.59 per cent 2016 and 7.95 per cent 2032 for notified amounts of Rs 6,000 crore and Rs 4,000 crore, respectively, through price based auction using the multiple price method. The cut-off
MONEY MARKET REVIEWjune 21, 2008 EPW Economic & Political Weekly36Table 9: Profile of Major Commercial Bond Issues during May 2008 Sr Issuing Company/Rating Nature of Instrument Coupon in % Per Annum and Tenor Amount in RsCrore FIs/Banks 1 HDFC Ltd AAA by Icra, Crisil Bonds 9.35 per cent for 18 months 2502 NABARD by AAA Crisil, Care Bonds 9.40 per cent for 2 years 240 NBFCS 1 GammonIndiaLtd 9.95percentfor10yearscall@endof3rdyear AAA by Icra, Care Bonds & put/call @ end of 7th year 200 CentralUndertaking 1 Hindustan Petroleum 7.61 per cent & 8.13 per cent respectively, Corp Ltd Special Bonds for 7 years and 13 years 415 NA 2 HindustanPetroleum CorpLtd NA Special Bonds 7.47 per cent & 7 per cent respectively, for 4 years 2473 Indian Oil Corp Ltd NA Oil Bonds 7.01 per cent for 15 yrs 590 Corporates 1 TataSteelLtd Bonds 10.20percent&250bpsoverNSEMiborfor AAA by Fitch 7 years & 3 years with put & call @ end of 5th year 750 Total 2,937Total includes three more issues for less than Rs 100 crore (one FIs/Banks, two NBFCS).Total for May 2007 (a year ago): Rs 3,293 crore. Total for April 2008 (a month ago): Rs 3,487 crore.The amount shown in brackets above denotes the greenshoe option of the issue. Source: Various Media Sources. Table 10: Operations of RBI’s Liquidity Adjustment Facility** (Amount in rupees crore) For the Week Range of Repo (Injection) * Reverse Repo (Absorption) * Net Injection Net(April-May 2008 ) Repo/RR Period Bids Received Bids Accepted Bids Received Bids Accepted (+)/ Outstanding Days Number Amount Number Amount Number AmountNumber Amount DailyAbsorption(-)Amount Averages of of Liquidity at the Bids Accepted Week End@ 1 2 3 4 5 6 7 8 9 1011121331 Mar - 04 Apr 08 1-3 40 57,220 40 57,220 65 64,265 65 64,265 16,066 -7,045 37,95007 Apr - 11 Apr 08 1-4 0 0 0 0 245 3,13,370 245 3,13,370 62,674 -3,13,370 37,37015 Apr - 17 Apr 08 1-4 0 0 0 0 76 72,475 76 72,475 24,158 -72,475 7,04521 Apr - 25 Apr 08 1-3 0 0 0 0 113 1,35,065 113 1,35,065 27,013 -1,35,065 32,76528 Apr - 02 May 08 1-3 0 0 0 0 60 38,700 60 38,700 9,675 -38,700 20,25005 May - 09 May 08 1-3 0 0 0 0 192 2,05,675 192 2,05,675 41,135 -2,05,675 23,05012 May -16 May 08 1-4 13 20,885 13 20,885 28 11,805 28 11,805 2,361 9,080 -19,64020 May - 23 May 08 1-3 0 0 0 0 98 1,16,085 98 1,16,085 29,021 -1,16,085 29,61026 May - 30 May 08 1-3 37 48,635 37 48,635 11 1,220 11 1,220 244 47,415 -9,600* With effect from March 31, 2007 the Repo Rate is 7.75% and Reverse Repo Rate 6%. ** Includes Second LAF Auctions under Repo and Reverse Repo. With effect from August 6, 2007 RBI withdrawn second LAF auctions which conducted on a daily basis, also withdrawn the cap on daily reverse repo absorptions under LAF and second LAF. @ Net of Repo and Reverse Repo Outstandings.yield for the eight-year paper was set at 7.96 per cent, which was re-issued after a long time while the cut-off yield for the 24-year paper was set at 8.35 per cent that was reissued in April at a much higher rate of 8.67 per cent. In the second instance on May 23, the government re-issued 8.24 per cent 2018 and 8.28 per cent 2032 for notified amounts of Rs 6,000 crore and Rs 4,000 crore, respectively, through price-based auction using the multiple price method. The cut-off yield was set for 10-year paper at 8.07 per cent as against 8.24 per cent set in the previous month, while for the 24-year paper it was set at 8.52 per cent. On May 27, five state governments auctioned state development loans for 10-year maturity for an aggregate amount Rs 3,264 crore through yield based auc-tion using the multiple price auction meth-od, the cut-off yields were set in the range of 8.39 per cent-8.68 per cent. 3.2 TreasuryBills The primary yields on treasury bills (TBs) showed a mixed trend with the yields on 91-day and 364-day bills rising while those on 182-day bills declining over the month. However, the spread between 91-day and 364-day TBs narrowed to 19 basis points as against 34 basis points in the previous month. As against Rs 17,500 crore mopped up in April, the RBI mopped up Rs 21,000 crore under normal and MSS auctions in May. The yield set on 91-day TBs rose from 7.31 per cent on May 7 to 7.39 per cent on May 14 and to 7.48 per cent on May 21, and then ruled steady at it on May 30. Similarly, the yield on 364-day TBs jumped from 7.55 per cent on May 9 to 7.66 per cent on May 23. Unlike them, the yield on 182-day TBs slipped from 7.58 per cent on May 14 to 7.53 per cent on May 28 (Tables 6 to 8, p 35). 3.3 Corporate Bonds Market In May, the primary market mobilisations fell to Rs 2,937 crore from Rs 3,487 crore in April given the interest rate uncertainty due to looming inflationary concerns. In the first two months of the current financial year, unlike in past, the banks have not tapped the market. Instead financial institu-tions, corporates and non-banking financial companies have been the major borrowers. Among the financial institutions that tapped the market in May, the IDFC offered 9.35 per cent for its two-year paper while for the same maturity National Bank for Agricul-ture and Rural Development (NABARD) had to offer 9.40 per cent despite enjoying the same credit rating (Table 9).In view of the unprecedented escalation in international crude oil prices, the RBI has put in place a number of measures such as carrying out special market operations on an ad hoc basis by carrying out open market operations in the secondary marketinoil bonds held byPSU oil companies subjectto an overall ceiling of Rs 1,000 crore on any single day and by providing equivalent foreign exchange. Further, the valuation of special securities such as oil bonds, fertiliser bonds and others, which do not carry SLR status, has been made attractive and would now be valued at a spread of 25 bps above the corresponding yield on dated securities. Finally, theRBI has revised the
MONEY MARKET REVIEWEconomic & Political Weekly EPW june 21, 200837Appendix Table: Secondary Market Operations in Government Papers: NDS and NDS-OM Deals(Amount in rupees crore) Descriptions Week Ending May 2008: Yield to Maturity on Actual Trading Total for the Month 30 23 16 9 2 of May 2008 AMT YTM CY AMT YTM CY AMT YTM CY AMT YTM CYAMT YTM CYAMT YTM CY1TreasuryBills A91-DayBills 611.707.39 1652.407.30 1066.207.24 1691.907.11 883.237.20 5905.437.23 B 182-Day Bills 82.44 7.42 355.30 7.44 175.11 7.53 415.15 7.18 311.00 7.19 1339.00 7.31 C 364-Day Bills 565.00 7.42 594.83 7.37 261.75 7.35 810.22 7.01 362.08 7.25 2593.88 7.25 2 GOI DatedSecurities ARegular(PerCent:Year) 11.40 , 2008 ------20.007.7711.29 ------20.007.7711.29 5.48, 2009 976.90 7.83 5.61 460.00 7.79 5.61 1357.00 7.70 5.61 1716.00 7.64 5.61 1140.00 7.75 5.61 5649.90 7.72 5.615.48, 2009FERTSB---20.007.745.61 ---------20.007.745.615.48, 2009OMC SB---25.00 7.79 5.61 ---------25.00 7.79 5.616.65,2009 330.007.83 6.72246.50 7.79 6.71515.00 7.66 6.71630.00 7.65 6.71805.00 7.73 6.712526.50 7.72 6.716.65, 2009OMC SB---25.00 7.806.71 ---------25.00 7.806.716.96, 2009 ---------100.008.057.03 ---100.008.057.03 6.96 , 2009 OMC SB ---------100.00 8.11 7.03 ---100.00 8.11 7.037.33 , 2009 ------50.00 8.31 7.39 30.00 8.167.38 ---80.00 8.257.38 7.33 , 2009OIL MKT BONDS - - - - - - - - - - - - 400.00 8.36 7.39 400.00 8.36 7.39 7.33 , 2009 OMC SB 10.00 8.23 7.38 ---50.00 8.22 7.38 195.00 8.21 7.38 ---255.00 8.21 7.385.87,2010 900.007.93 6.05260.00 7.85 6.051265.00 7.72 6.041625.00 7.70 6.042530.00 7.85 6.056580.00 7.80 6.055.87 , 2010FERTSB---25.00 7.87 6.05 ---------25.00 7.87 6.055.87 , 2010OMC SB---25.00 7.87 6.05 ---------25.00 7.87 6.05 6.00 , 2010 UTI SB ---------10.00 8.50 6.23 10.00 8.53 6.25 20.00 8.52 6.247.55, 2010 ---30.05 7.937.60 ---25.00 7.70 7.57 ---55.05 7.82 7.59 11.30 , 2010 25.00 7.96 10.61 25.00 7.95 10.61 60.00 7.85 10.58 275.00 7.75 10.55 1023.62 7.96 10.59 1408.62 7.91 10.5812.25 , 2010 0.667.8111.30 ---55.00 7.8111.29 40.04 7.8111.28 435.00 7.8111.28 530.70 7.8111.286.57 , 2011 95.00 7.93 6.79 30.00 7.87 6.79 1030.00 7.78 6.772479.00 7.78 6.771054.72 7.87 6.79 4688.72 7.80 6.789.39 , 2011 50.00 8.059.06---------115.007.959.03 165.007.989.047.47,2012OIL MKT BONDS --- - -- - - -105.008.817.81 ---105.008.817.81 7.27,2013 1195.00 8.03 7.51 1968.12 8.00 7.50 325.09 7.84 7.45 365.00 7.80 7.44 291.98 7.96 7.49 4145.19 7.97 7.497.27 , 2013FERTSB---150.007.887.47 ---------150.007.887.47 7.37,2014 45.00 8.08 7.62 15.00 8.06 7.61 165.00 7.90 7.56 75.00 7.82 7.53 - - - 300.00 7.92 7.5611.33 , 2014 ------15.00 7.849.44 ------15.00 7.849.44 11.83,2014 25.00 7.89 9.89 60.00 7.92 9.90 20.00 7.84 9.86 25.17 7.86 9.87 0.02 7.92 9.89 130.19 7.89 9.88 7.38,2015 872.30 8.12 7.69 920.70 8.07 7.67 1494.00 7.92 7.61 5074.80 7.89 7.593342.94 8.02 7.6511704.74 7.96 7.627.61,2015OIL MKT BONDS --- - -- - - -120.008.958.16 ---120.008.958.1611.50 , 2015 ---------25.25 7.8110.74 0.108.009.70 25.35 7.8110.73 7.59,2016 1234.33 8.12 7.83 3056.65 8.08 7.81 10028.36 7.94 7.75 1235.00 7.94 7.75 - - -15554.34 7.98 7.777.59, 2016OMC SB---35.10 8.107.82 ---------35.10 8.107.827.99, 2016 ------15.00 7.897.94 ------15.00 7.897.947.46, 2017 135.008.207.83 ---1.447.97 7.7232.38 7.92 7.67 ---168.82 8.147.807.49 , 201750.00 8.177.82 3.008.007.74------115.008.137.80168.008.147.81 7.99,2017 155.39 8.12 8.06 491.00 8.07 8.02 1147.00 7.91 7.95 2987.00 7.89 7.94 2118.77 8.00 8.00 6899.16 7.95 7.97 8.07,2017 1165.00 8.16 8.11 330.00 8.07 8.07 505.00 7.93 8.00 1108.21 7.92 8.00 1760.00 8.01 8.04 4868.21 8.02 8.055.69, 2018 ------5.008.006.78 10.00 8.086.82 ---15.00 8.056.816.25, 2018 15.11 8.197.165.008.207.174.007.917.02 11.69 8.03 7.09 ---35.80 8.117.128.24,2018 17220.378.07 8.155113.77 8.01 8.1112290.21 7.84 8.0214638.04 7.83 8.0211155.638.00 8.1160418.02 7.95 8.08 5.64,2019 10.00 8.29 6.92 20.00 8.32 6.93 4.00 8.10 6.82 6.00 8.11 6.83 0.20 8.01 6.78 40.20 8.26 6.906.05,2019 10.008.247.175.008.247.188.008.097.236.007.947.02 ---29.008.137.167.75, 2021OMC SB------130.008.958.55 ------130.008.958.557.94, 2021 ---------45.00 8.198.10104.008.37 8.22149.008.31 8.18 8.13 , 2021 OMC SB ---------44.00 9.01 8.73 1413.00 9.22 8.87 1457.00 9.21 8.87 8.20,2022 26.00 8.33 8.29 145.00 8.23 8.21 135.00 8.14 8.16101.508.14 8.16152.008.408.34559.508.248.23 8.35,2022 15.50 8.36 8.35 0.20 8.27 8.30 0.15 8.16 8.22 150.18 8.15 8.22 12.00 8.38 8.37 178.03 8.19 8.246.17, 2023 2.108.237.49 ------8.168.017.34---10.26 8.067.378.01, 2023 ---5.009.017.87 10.00 8.988.71 ------15.00 8.998.43 8.01 , 2023 OMC SB - - - 2.44 8.96 8.75 116.19 8.98 8.71 10.00 8.92 8.67 5.00 9.03 8.75 133.63 8.98 8.71 8.30 , 2023 FERT SB 26.65 9.03 8.83 60.19 8.91 8.82 112.29 9.01 8.82 115.97 9.01 8.82 140.01 9.19 8.95 455.11 9.05 8.868.33 , 2023 ---------196.008.36 8.36 ---196.008.36 8.36 8.03 , 2024 FCI SB 5.29 9.02 8.77 0.45 8.96 8.72 ---5.01 8.92 8.69 0.40 9.09 8.83 11.15 8.97 8.74 8.20 , 2024 OMC SB 4.95 9.02 8.79 6.90 9.02 8.81 125.35 9.00 8.79 - - - 428.00 9.22 8.95 565.20 9.17 8.917.95, 2025 ---20.009.03 8.57 ---------20.009.03 8.57 7.95 , 2025 OMC SB 19.45 9.04 8.77 61.65 8.94 8.75 326.80 9.00 8.74 741.20 9.06 8.78 5.51 9.09 8.80 1154.61 9.04 8.778.40, 2025FERTSB---12.30 8.019.26 ---------12.30 8.019.26 8.40 , 2025 OMC SB 22.46 9.01 8.86 69.73 8.98 8.88 49.16 9.01 8.87 685.00 9.07 8.91 ---826.35 9.06 8.917.95, 2026 ---15.00 9.07 8.82 ---------15.00 9.07 8.82 7.95 , 2026 FERT SB 93.30 9.11 8.84 33.70 8.45 8.80 5.40 9.02 8.77 95.00 9.04 8.79 - - - 227.40 8.98 8.81 8.40 , 2026 OMC SB 0.45 8.98 8.85 5.05 8.94 8.87 9.97 8.99 8.86 100.87 8.98 8.85 822.15 9.21 9.04 938.49 9.18 9.02 8.23 , 2027 FCI SB ---0.87 8.97 8.82 1.00 8.95 8.80 29.00 9.02 8.86 ---30.87 9.02 8.86 7.95,2032 5.00 8.43 8.36 86.74 8.45 8.38 1148.33 8.34 8.28 354.74 8.31 8.26 80.60 8.41 8.35 1675.41 8.34 8.298.28, 2032 435.00 8.468.43 200.008.49 8.46 ---------635.008.478.44 8.33,2036 1250.00 8.44 8.43 1371.58 8.41 8.40 2754.25 8.34 8.34 2543.70 8.34 8.34 2491.33 8.42 8.4310410.86 8.38 8.38 Sub-total 26454.02 8.09 7.9215496.61 8.07 7.84 35372.59 7.95 7.76 38291.26 7.94 7.7331952.31 8.12 7.93147566.79 8.02 7.83BRBI’sOMO:Sales41.00--5.00 --96.00 - - -- -76 --218.00 - - Purchase 10.00 --30.00 --79.00 -----14 --133.00 --Sub-total 51.00 --35.00 --175.00 --0.00 --90.00 --351.00 -- (A+B) 26505.02 8.09 7.92 15531.61 8.07 7.84 35547.59 7.95 7.76 38291.26 7.94 7.7332042.31 8.12 7.93147917.79 8.02 7.833 MarketRepo 84903.40 71513.44 102235.40 100221.90 75172.05 434046.19 4 State Govt Securities 198.61 8.53 8.54 8.70 8.42 8.44 108.22 8.19 9.91 3227.40 8.12 8.25 54.05 8.38 8.76 3596.98 8.15 8.32 Grand total (1 to 4) 112866.17 89656.28 139394.27 144657.83 108824.72 595399.27 (-) Means no trading YTM = Yield to maturity in per centage per annum CY = Current yield in per cent per annum SGL = (RBI’s) Subsidiary General Ledger OMO = Open Market Operations OMC SB= Oil Marketing Companies Special Bonds NDS = Negotiated Dealing System OM = Order Matching Segment. Securities with small-size transactions (Rs 10 crore or less) have been dropped from the above list but included in the respective totals. (1) Yields are weighted yields, weighted by the amounts of each transaction. (2) Current yield has not been worked out for treasury bills. (3) For Floating Rate Bonds (FRB’s) Current yields are based on the latest half-year yield determined in the auction.
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