More Stories

Informist, Tuesday, Mar. 25, 2025

MUMBAI – On Wednesday, gilts and overnight indexed swap rates are seen opening steady due to lack of fresh domestic cues. Both markets may take cues from the overnight movement of US Treasury yields, dealers said.

Traders may also continue to bet on the possibility of further domestic rate cuts and a stance change to 'accommodative' by the Reserve Bank of India's Monetary Policy Committee in April. They may also assess developments related to the US tariff policy and the rupee's movement against the dollar, dealers said. Crude oil prices could also be a trigger if they move significantly.

On Wednesday, the one-day call rate may open above the repo rate as banks will borrow funds to meet their reserve requirements in early trading hours.

GOVERNMENT BONDS

On Wednesday, gilt prices may open steady due to lack of fresh domestic cues scheduled until the government details its borrowing calendar for Apr-Sept, with some dealers also looking to states' borrowing plan for Apr-Jun, both likely this week.

The yield on the 10-year benchmark 6.79%, 2034 bond is seen at 6.60-6.68% during the day. On Tuesday, the bond settled at INR 101.07, or 6.64% yield.

OIS RATES

On Wednesday, swap rates may take cues from the movement in US Treasury yields. Swaps may also react to the movement in government bonds during the day, dealers said. Short-term swaps will closely track the movement in the overnight Mumbai Interbank Offered Rate, with the RBI's proactive liquidity measures seen keeping the rate below the Marginal Standing Facility rate of 6.50% for the rest of the seasonal tightness in March, dealers said.

The one-year swap rate is seen at 6.00-6.13% and the five-year rate at 5.85-6.00%. On Tuesday, the one-year swap rate ended at 6.12% and the five-year swap rate closed at 5.96%.

CALL

On Wednesday, the one-day call rate may open above the repo rate as banks will borrow funds to meet their reserve requirements in early trading hours. During the day, the call rate is seen in the range of 5.80-6.50% and the triparty repo rate in the range of 5.75-6.40%. On Tuesday, the one-day call rate ended at 6.00%.

RBI AUCTION 

--RBI to hold overnight VRR auction for INR 750 billion 1000-1030 IST

--RBI to auction 91-day T-bills worth INR 140 billion

--RBI to auction 182-day T-bills worth INR 120 billion

--RBI to auction 364-day T-bills worth INR 70 billion

LIQUIDITY

--Total net outflows of INR 234.09 billion. The calculation of flows does not take into account the redemption of the standing deposit facility and scheduled variable rate repo and reverse repo operations.

* Inflows

--INR 43.05 billion as coupon on state bonds

--INR 445.41 billion as payment from RBI gilt buy at OMO auction Tuesday

* Outflows

--INR 462.04 billion as reversal of 5-day variable rate repo tender

--INR 722.55 billion as payment for state bonds

--INR 956.53 billion as reversal of overnight variable rate repo tender

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Cassandra Carvalho

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.