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Rupee tad weaker - bonds bullish
Mumbai: The rupee closed at 43.56/57, lower than Tuesday's level of 43.54.

Forwards market: The 6-month premium closed at 0.75 per cent (0.91 per cent) and the 12-month premium closed at 0.80 per cent (0.88 per cent).

G-Secs: The 10.25 16-year 2021 paper, which is currently most active, closed at Rs125.60 (7.46 per cent YTM), up from Tuesday's level of Rs124.91 (7.52 per cent YTM). The 7.38 per cent 10-year benchmark paper was dealt at Rs102.55 (7.02 per cent YTM) against the previous level of Rs102.38 (7.04 per cent YTM). The 7.55 per cent 5-year 2010 paper closed at Rs103.85 per cent (6.59 per cent YTM). The 7.27 8-year 2013 paper, which is the most active paper, opened at Rs102.30 (6.89 per cent YTM) and closed at Rs102.39 (6.87 per cent YTM).

Call rate: The inter bank rate was at 4.95 per cent (4.75 - 5 per cent).

Reverse repo auction: In the one day reverse repo auction, RBI received and accepted 56 bids amounting to Rs42,625 crore.

CBLO market: 249 trades, for Rs1,311.15 crore, in the rate range of 4.50 - 4.99 per cent were realised.
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Reddy: RBI keeping close watch on global crude prices
Hyderabad: RBI governor Dr YV Reddy has said that the Reserve Bank of India (RBI), is keeping a close watch on the spiraling global crude oil prices, as the situation directly impacts the economy.

"They will affect forex reserves on one hand and influence domestic prices on the other," RBI governor Dr YV Reddy said at an interactive meet with the students of Institute of Insurance and Risk Management (IIRM) on Wednesday.

Responding to a question from a student on oil prices impact on public, Reddy said, "if the volatality of the prices is temporary, the burden should not be passed on to the people. But if it is permanent then there is no way but passing on the burden."

While interacting with students of IIRM, Dr Reddy said the role of RBI was fast changing from that of a controller to a regulator. "There has been a transition from control regime to role of a regulator and manager," he said.

Speaking about the current state of credit markets, the RBI governor said the liquidity adjustment facility, which is being monitored once a day by RBI, can be changed if the need arises. "We are even prepared to monitor the market twice or thrice a day," Reddy said.
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Reddy: Payment Corporation mooted
Hyderabad: The Reserve Bank of India (RBI) will encourage banks to set up a payment corporation, to streamline payment system, RBI governor Dr YV Reddy said on Wednesday.

"A payment regulatory board has already been set up within RBI, which also held its first meeting. We are advising Indian Banks Association (IBA) and other banks to come forward to set up a payment corporation," Reddy told reporters.

It would help speedy and hassle-free cheque clearance, among other aspects, he added.
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T-bills auction fully subscribed
Mumbai: The auctions of the 91-day and 182-day Treasury Bills were fully subscribed, according to a press release from the Reserve Bank of India.

The notified amount for the 91-day T-bills was Rs2,000 crore. The RBI received 52 competitive bids, amounting to Rs6,879.35 crore. Of this, it accepted 19 bids. The cut-off price was Rs98.71. The partial allotment percentage was 13.45 per cent from 15 bids. The weighted average price was Rs98.72.

The RBI also received and accepted one non-competitive bid, for an amount of Rs18.39 crore.

For the 182-day T-bills, the notified amount was Rs1,500 crore. The RBI received 33 competitive bids amounting to Rs3,703.02 crore. Of this, it accepted 17 bids. The cut-off price was Rs97.35. The partial allotment percentage was 23.32 per cent from 8 bids. The weighted average price was Rs97.36.

The RBI also received and accepted one non-competitive bid for an amount of Rs500 crore.

The partial allotment percentage for non-competitive bids was 100 per cent and devolvement on the RBI was nil for both T-bills.
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BoB drops interest rates on retail loans
Mumbai: The Bank of Baroda has reduced interest rates on retail loans for housing, cars and traders. The new rates will be effective from August 1.

In a press release here today, the bank said the rate cut was being affected to achieve an incremental market share before the ensuing festive season. The revised rates would be applicable only on new loans and for old loans with floating rate option.

The drop in housing loan varies from 25 basis points under floating rate to 50 basis points under fixed rate option for five years and above.

The new floating rates on housing loans for above five years and up to 15 years is 8.25 per cent.
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