HALISTER1: India Govt Bond Volumes Double in July on Monsoon, Global Yields

India Govt Bond Volumes Double in July on Monsoon, Global Yields

(Bloomberg) -- India govt bond trading volumes daily averaging at 962.2b rupees ($14.3b) so far in July vs 449.6b rupees average in 2016.
  • “Large turnover is due to bullishness amid the good monsoon and low global yields,” Debendra Kumar Dash, bond-trader at DCB Bank says
  • RBI OMOs helped in absorbing supply
    • NOTE: RBI has bought 800b rupees of bonds via OMOs since April policy meeting
  • Weekly bond auctions have been well bid with a few bids absorbing entire auction supply; this has led to secondary market demand
  • Yield on 7.59% govt bond due 2026 down 1 bp to 7.24%; has seen five successive week of falls
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Source: BFW (Bloomberg First Word)

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Debendra Dash (DCB Bank Ltd)

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