India OMO Adds to Bond Bullishness Amid Surplus Cash: FirstRand
Source: BFW (Bloomberg First Word)
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Harihar Krishnamoorthy (FirstRand Ltd)
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(Bloomberg) -- RBI’s OMO announcement amid surplus cash of 962b rupees ($14.5b) is giving assurance to market over the central bank’s liquidity stance, Harihar Krishnamoorthy, Mumbai-based treasurer at FirstRand says.
Alert: HALISTER1- “The RBI seems to be building up a large margin of safety as far as rupee liquidity is concerned ahead of non-resident deposit outflows,” says Krishnamoorthy
- Potential liquidity mismatches may happen anytime in the system due to outflows but market is now more confident OMOs will take place when necessary
- Yield on new 6.97% 2026 bond slides 8 bps to 6.83%; yield on 7.59% 2026 bond drops 4 bps to 7.05%
- NOTE: India outflows to hurt rupee, liquidity if they top $15b: BofAML
Source: BFW (Bloomberg First Word)
People
Harihar Krishnamoorthy (FirstRand Ltd)
To de-activate this alert, click here
UUID: 7947283