India’s Bond Buyback Suggests Govt Has Adequate Cash: Nomura
Source: BFW (Bloomberg First Word)
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Vivek Rajpal (Nomura Holdings Inc)
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(Bloomberg) -- A lot of month-end fiscal numbers are seasonal in nature and interpretations should be made with care, says Vivek Rajpal, Singapore-based rates strategist at Nomura.
Alert: HALISTER1- NOTE: April-Sept. budget deficit widened to 84% of fiscal 2017 estimate; that’s the highest level for a first-half deficit in almost two decades, according to Business Standard
- “In October, we observed government buying back bonds, which suggests that government was comfortable with its cash surplus levels,” Rajpal says
- NOTE: India last week bought back 184.6b rupees of bonds vs planned 200b
- Says interbank liquidity tightened in October because govt’s cash surplus had risen
- “I wouldn’t be too worried about the fiscal situation, looking at end-September numbers.”
- Also, from a strategic perspective as well, govt will ensure deficit targets are met for the fiscal year: Nomura
- Yield on 10-year govt bond down 2bps to 6.77%
Source: BFW (Bloomberg First Word)
People
Vivek Rajpal (Nomura Holdings Inc)
To de-activate this alert, click here
UUID: 7947283