Govt To Borrow $22.6 Billion More Up To Sept: RBI - July 16, 2009

The government will borrow additional Rs1.1 trillion ($22.6 billion) before the end of the first half of the fiscal that began on 1 April, a Reserve Bank of India (RBI) deputy said on Thursday, sending bond yields lower as the figure was les than the market expectation. Shyamala Gopinath told reporters that the borrowing would be done in 10 tranches and for this, a calendar would be published later today.

The government so far has borrowed Rs 1.8 trillion in the fiscal year 2009-10. Gopinath said the central bank would continue to buy back government bonds from the market, depending on liquidity conditions. It has so far bought back Rs29,850 crore in the fiscal year and the target was Rs80,000 crore.

Liquidity Conditions Dominated In The Market - Oct 3, 2008

Tight liquidity conditions dominated in the market as call rates reached an intra-day high of 17.25 per cent. The rates subsided to end at 13.5-14 per cent, lower than the previous close of 15.75-16 per cent. The Reserve Bank of India put in around Rs 92,000 crore into the system via the repo auction. In the two-day repo auction under the first liquidity adjustment facility (LAF), the RBI got and accepted 51 bids worth Rs 70,295 crore. There were no reverse repo bids. In the two-day repo auction under the second LAF, the RBI got and accepted 27 bids for Rs 21,425 crore. In the CBLO market, there were 359 trades totaling to Rs 14,886.30 crore in the rate range of 9.00-15 per cent.