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Blinkered Formulation of Monetary Policy

The Reserve Bank of India currently uses indirect instruments of monetary control that operate through the market mechanism. Signals are sent by injection or contraction of liquidity, or by changing bank reserves and short-term interest rates. But there is no direct correspondence between the instrument and the ultimate policy objective of higher growth and price stability. On the other hand, the availability of credit is the most potent direct instrument of monetary control, which can bring about an one-to-one correspondence between the instrument (such as credit ceilings) and economic objectives (sectoral growth). With the Planning Commission too talking about the role of credit in promoting inclusive growth, the monetary authorities cannot but integrate policy objectives with policy instruments, with the application of direct instruments of monetary policy such as the use of directed credit and interest rate bands.

MONEY MARKET REVIEWmay 17, 2008 EPW Economic & Political Weekly28Blinkered Formulation of Monetary PolicyEPW Research FoundationThe Reserve Bank of India currently uses indirect instruments of monetary control that operate through the market mechanism. Signals are sent by injection or contraction of liquidity, or by changing bank reserves and short-term interest rates. But there is no direct correspondence between the instrument and the ultimate policy objective of higher growth and price stability. On the other hand, the availability of credit is the most potent direct instrument of monetary control, which can bring about an one-to-one correspondence between the instrument (such as credit ceilings) and economic objectives (sectoral growth). With the Planning Commission too talking about the role of credit in promoting inclusive growth, the monetary authorities cannot but integrate policy objectives with policy instruments, with the application of direct instruments of monetary policy such as the use of directed credit and interest rate bands.Monetary policy formulation, inthe context of the complex macro-economic situation faced by the central bank in India, cannot be an envia-ble exercise. The policy is said to aid growth, manage liquidity, satisfy legitimate requirements of credit, and above all, be consistent with the objective of price stability. Amongst these, the most problematic area has been the uncontrolled flow of liquidity sourced to external flows. Ebbs and flowsof liquidity arising out of domestic economic activity are easier to handle as they consti-tute an integral part of the real and nominal growth processes, but vast amounts of externally injected liquidityflowsare throwing upchallenges on many aspects of macroeconomic management: interest rates, the exchange rate for the rupee,the liquidity conditions in the money and govern-ment securities markets and the stanceon price stability. On ideological considera-tions under the influence of globalisation, the authorities are not inclined to impose any restraint on portfolio flows. 1 ExcessiveMonetaryGrowth Against such a background, it is under-standable that the Reserve Bank of India (RBI) can only bemoan, as it has been doing now for three to four years, that “money supply has risen above indicative projections persistently through 2005-07 on the back of sizeable accretions to the Reserve Bank’s foreign exchange assets…” Therefore, it was said in the 2007-08 annual monetary policystatement(April2007) – and it has been repeated in the latestpolicystate-ment for 2008-09 (April 2008) – that “in view of the resulting monetary overhang, it is necessary to moderate monetary expansion” and plan for a lower rate of money supply growth “in consonance with the outlook on growth and inflation”. In the 2007-08 policy, the indicative target for M3 growth was 17- 17.5 per cent and for the latest 2008-09 policy, it is 16.5-17.0 per cent as against the average of over 21 per cent during 2005-08. Consistent with these projections of money supply, two more indicative projections are set out: aggregate deposits with scheduled com-mercial banks (17 per cent for 2008-09 as against an average of 23.3 per cent during 2005-08), which determine the lendable resources of banks; and growth of non-food credit including commercial investments by banks (placed at 20 per cent for the projection year as against the average of 29.7 per cent during 2005-08).As shown in Table 1 and as admitted by theRBI, none of these indicative projections have been fulfilled in reality. No doubt, these indicative projections may have their usefulness for the financial markets so that they can plan their operations, but the same would be considerably mislead-ing if there are no concurrent guidelines on the distributional issues of bank credit. Be that as it may, what appears inadmis-sible in the whole policy discourse is the pretension that these indicative projec-tions aid the process of growth or that they help in containing inflation. There is hardly any sound theoretical or empirical proof for this except for the professed faith. A more realistic caricature of the whole projection exercise appears to be that the growth and inflation are given to the monetary planners based on sectoral growth performances and supply-demand considerations, respectively.In the inter-play of sectoral growth and inflation, a significant role is no doubt played by the availability and use of bank credit. The availability of credit consti-tutesthe most potent direct instrument ofmonetary control, which can bring about an one-to-one correspondence between the instrument (such as credit Piyusha Hukeri drafted the initial note and V P Prasanth compiled the accompanying tables and graphs.Table 1: Indicative Projections and Achievements of Key Monetary Variables (in %)Year M3 Growth Aggregate Deposits Non-Food Credit TargetAchievement Target Achievement TargetAchievement2008-09 16.5-17.0 -17.0 -20.0 -2007-08 17.0-17.5 20.7 18.8* 22.224.0-25.0 22.32006-07 15.021.515.6*23.820.028.42005-06 14.521.215.0 24.019.038.4* Derived from absolute figures of projections.
MONEY MARKET REVIEWmay 17, 2008 EPW Economic & Political Weekly30Table 3: Money Market Operations (RBI’s Daily Data) Average April 2008 Average March 2008 Items for Four Weeks 25 (RF) 18 11 (RF) 4 for Four Weeks 28 (RF) 21 14 (RF) 7No of working days 21 6 4 6 5 20 5 4 6 5CallMoney Weighted average of call rates: 4.11-9.32 5.60-6.63 6.04-6.30 4.11-5.82 5.89-9.32 5.71-8.30 6.20-7.92 7.72-8.30 5.97-6.16 5.71-7.34 per cent (weekly range) per annum (5.60) (4.11) (6.20) (6.12)Daily averages (Rupees crore) 8061 10819 7502 6148 7494 10336 12767 13117 8174 8276 Total call market borrowings (259) (580) (742) (1133)NoticeMoney Weighted average of notice money rates: 3.10-8.50 4.50-6.49 4.50-6.27 3.10-6.05 5.80-8.50 5.14-8.98 6.25-8.98 7.10-8.91 5.14-9.57 5.72-7.25 per cent (weekly range) per annum (6.90) (6.25)Daily averages (Rupees crore) 2151 2058 3497 1394 2130 1956 2540 243 2910 2177 Total notice market borrowings (11264) (7893) (12668) (14516) Turnover in term money market 138 287 60 96 74 269 170 181 368 410 (borrowings) $$ (105) (215) (795) (560)*Data for reporting Fridays are given within brackets and they are also included in the weekly range/daily averages. $$ No of reporting/traded days is fewer than given above. Table 5: Comparison of Call, Overnight CBLO and Repo RatesWeek Ending Weighted Average Rates (in %) Daily Average Volumes (Rs Crore) Call Overnight CBLO Repo Call Overnight CBLO Repo 7-Mar-08 6.706.20 6.5310,45348,16416,95714-Mar-08 6.10 5.61 5.9810,599 39,422 19,27719-Mar-08 8.05 7.24 7.7813,360 30,515 10,32428-Mar-08 7.45 6.88 7.3415,308 38,525 14,8724-Apr-08 6.995.466.509,62333,699 9,56711-Apr-08 5.61 3.48 4.28 7,540 37,99917,40817-Apr-08 6.14 6.00 6.0910,998 35,38212,35725-Apr-08 6.09 5.40 5.8712,847 38,325 15,884Source: The Clearing Corporation of India (CCIL).Table 4: Weighted Averages of Daily Call/Notice Rates in Per Cent Per Annum: Simple Statistical Characteristics Month/Week Simple Standard Coefficient of Simple Standard Coefficient of Mean*DeviationVariation Mean* Deviation Variation (in %)$ (in %)$ Call Money Notice Money **March2008 All four weeks 6.93 0.87 12.62 6.36 2.49 39.13 28 (RF)* 7.28 0.669.047.111.1215.76 21 8.080.253.098.180.789.49 14(RF)*6.060.071.194.413.7685.19 7 6.700.6810.096.500.578.84April2008 All four weeks 6.22 1.12 18.02 5.43 2.23 41.13 25(RF)* 6.100.345.515.890.7312.38 18 6.150.111.844.192.9069.20 11(RF)*5.310.6311.804.142.3656.96 4 7.501.5220.257.401.3317.97** Separate reportings began on March 15, 2005. * Including data for reporting Fridays (RF). $ Based on original unrounded figures.Source: RBI. Before concluding, it deserves to be pointed out that it was the financial sector reform that contributed to the failure of the organised credit system to extend credit to agriculture, small-scale industries and other small borrowers during the 1990s and thereafter. Now, the new-found enthusiasm amongst the authorities to move to Basel II norms and adopt other global standards for risk measurement and management, and coverage should not be at the cost of access to financial resources for the poor. Given the willing-ness to adopt “financial inclusion” as a policy framework, it should be possible to establish appropriate checks and balances to take care of the needs of the poor; in a broader context, lending to the poor is not necessarily more risky than to the rich.2 Money, Gilt-Edged and Forex MarketsWith the domestic inflation rate ruling above 7 per cent for all the weeks in April, the authorities undertook a number of fiscal and supply-augmenting measures, given the supply constraints as well as global factors driving up the inflation rate. The finance minister expressed concerns about the rising inflation and accepted sacrificing growth in order to contain the rise. Even the prime minister called an unscheduled meet-ing of his cabinet to discuss the measures necessary to combat the surging inflation. Against this backdrop, the outlook for money and government securities markets turned cautious as the market participants anticipated monetary measures to rein in the rising inflation rate, though there was a surfeit of liquidity brought about by increased government expenditure, return flow of advance tax payments and redemption and coupon payments. The amount of liquidity sloshing around in the system manifested itself through the huge size of reverse repo bids under the liquidity adjustment facility (LAF) tendered at Rs 79,000 crore; similar sized bids were tendered in July 2007 (Table 2, p 29). As anticipated, market stabilisation schemes (MSS) auctions were resumed under special dated securities as well as treasury bills (TB) to manage the large surpluses in conjunction with the normal market borrowings. In the case of twoTB auctions during the month, the RBI partially rejected the bids in an attempt to moderate the interest rate expec-tations. But, with the looming infla-tion threat, as the price rise jumped to 7.41 per cent as released on April 11 and as the RBI governor opined that the inflation was unacceptably high and that suitable measures would betaken, market sentiments turned cautious. On April 17, the RBI, to manage infla-tionary expecta-tions, unexpectedly announced an increase in the cash reserve ratio (CRR) by 50 basis points from 7.5 per cent to 8 per cent in two tranches of 25basis points, each effective from April 26 and May 10, thereby impounding a total amount of Rs 18,500 crore. Though the market had been expecting some meas-ures, the timing caught them unawares. Consequently, the yields firmed up across maturities and the secondary market turn-over dipped. Yet, liquidity remained in sur-plus as indicated through the LAF reverse repo bids tendered and market participants expected further monetary measures in the impending annual credit policy, which were supported by the statement of the finance minister that more measures would be taken
MONEY MARKET REVIEWEconomic & Political Weekly EPW may 17, 200831Table 6: Auctions of 91-Day Treasury Bills(Amount in rupees crore) Date of Notified Bids Tendered Bids Accepted Subscription Cut-off Cut-off AmountAuction AmountDevolvedPriceYieldOutstanding- No Face Value No Face Value on PDs (Rupees) Rate on the Date (Amount) (Amount)(Amount) (in%)ofIssue (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)2007 April 4 2,000.00 109 8,612.05 13 2,000.00 0.00 98.06 7.94 91,428.57 (2) (1,200.00) (2) (1,200.00) [98.07] [7.89] April 11 2,000.00 137 7,215.42 18 2,000.00 0.00 98.20 7.35 89,928.57 (1) (500.00) (1) (500.00) [98.22] [7.27] April 18 2,000.00 69 2,714.35 29 709.35 0.00 98.17 7.48 90,206.77 (2) (1,000.00) (2)(1,000.00) [98.18] [7.14] April252,000.00 954,416.73 352,000.000.00 98.20 7.3591,686.36 (1) (100.00) (1) (100.00) [98.21] [7.31] 2008 April 2 500 47 2,633.08 1 500.00 0.00 98.30 6.94 43,457.00 (2) (4,500.00) (2) (4,500.00) [98.30] [6.94] April 9 6,000 132 8,076.23 110 6,000.00 0.00 98.23 7.23 44,879.00 (3) (2,422.12) (3)(2,422.12) [98.27] [7.06] April 16 5,500 117 7,192.80 56 3,000.00 0.00 98.18 7.44 44,679.00 (0) (0.00) (0) (0.00) [98.20] [7.35] April 23 2,500 105 6,747.10 39 2,500.00 0.00 98.18 7.44 42,090.00 (1) (500.00) (1) (500.00) [98.19] [7.39] April30 3,000 111 7,695.28 52 3,000.00 0.00 98.20 7.35 43,707.00 (0) (0.00) (0) (0.00) [98.21] [7.31] Figures in parentheses in cols 3 to 6 represent numbers and amounts of non-competitive bids which are not included in the total. Figures in the square brackets under cols 8 and 9 represent weighted average price and respective yield. Table 7: Auctions of 182-Day Treasury Bills(Amount in rupees crore) Date of Notified Bids Tendered Bids Accepted Subscription Cut-off Cut-off AmountAuction AmountDevolvedPriceYieldOutstanding No Face Value No Face Value on PDs (Rupees) Rate on the Date (Amount) (Amount)(Amount) (in%)ofIssue2007 April4 1,500.00 88 7,005.00 51,500.00 0.00 96.17 7.9918,175.69 (0) (0.00) (0) (0.00) [96.18] [7.97] April18 1,500.00 65 3,085.00 211,500.00 0.00 96.28 7.7519,079.85 (2) (524.16) (2) (524.16) [96.32] [7.66] 2008 April2 500.00 522,095.00 2 500.00 0.00 96.54 7.1914,785.00 (0) (0.00) (0) (0.00) [96.56] [7.14] April16 3,000.00 752,663.00 26 500.00 0.00 96.35 7.6013,785.00 (2) (1,500.00) (2) (1,500.00) [96.38] [7.53] April 30 1,000.00 83 4,430.25 7 1,000.00 0.00 96.42 7.4515,035.00 (1) (750.00) (1)(750.00) [96.43] [7.42]Figures in the square brackets represent weighted average price and the respective yield. Figures in brackets represent numbers and amounts of non-competitive bids which are not included in the total.Table 8: Auctions of 364-Day Treasury Bills(Amount in rupees crore) Date of Notified Bids Tendered Bids Accepted Subscription Cut-off Cut-off AmountAuction AmountDevolvedPriceYieldOutstanding No Face Value No Face Value on PDs (Rupees) Rate on the Date (Amount) (Amount)(Amount) (in%)ofIssue2007 April11 2,000.00 111 8,010.00 92,000.00 0.00 92.87 7.70 54,942 (1) (130.00) (1) (130.00) [92.90] [7.66] April25 2,000.00 81 4,625.00 442,000.00 0.00 92.83 7.74 55,942 (1) (300.00) (1) (300.00) [92.87] [7.70] 2008 April 9 2,000.00 95 4,697.50 442,000.00 0.00 93.15 7.3757,075.00 (0) (0.00) (0) (0.00) [93.18] [7.34] April23 2,000.00 102 4,735.00 552,000.00 0.00 92.88 7.6956,775.00 (0) (0.00) (0) (0.00) [92.92] [7.64] Figures in the square brackets represent weighted average price and the respective yield. Figures in brackets represent numbers and amounts of non-competitive bids which are not included in the total.to tame inflation. Alongside, with the inter-national oil prices increasing at an alarm-ing pace, heightening the concerns about domestic inflation, market sentiments remained subdued. In the annual policy statement on April 29, the RBI held the rates steady but increased the CRR by yet another 25 basis points to 8.25 per cent with effect from the fortnight beginning May 24; the market sentiments became buoyant. Inci-dentally, the Securities Exchange Board of India (SEBI) has allowed mutual funds to short-sell government securities under DVP–III arrangements and further they can also participate in the when-issued market.2.1 CallMoney Market The short-term money market rates remained stable in April and hovered around the floor rate set by the reverse rate of 6 per cent due to huge surfeit of liquidity despite looming uncertainty given the heightened inflationary conditions (Table 3, p 30). Even the hike inCRR of 25 basis points effective from April 26 had a marginal impact on call rates, unlike in November 2007 when the CRR was hiked by 50 basis points and the short-term rates had firmed up. Yet, the volatility in call rates, as defined by the measure of stand-ard deviation, was higher in April than that in March (Table 4, p 30). The call rates showed distinct stability as compared with Collateralised Borrowing and Lending Obligation (CBLO) and repo rates which were volatile, as they dipped to nearly 1 per cent on a few occasions and then peaked over 6.5 per cent; such vast variations in the rates of these segments imply limited arbitrage opportunities between these segments as mutual funds, who are the main lenders, deploy huge funds in the collateralised segments but they do not operate in the call market. The weighted averages of call rates fell from a peak of 7.34 per cent on April 2 to 5.26 per cent on April 9 due to surplus liquidity on account of the reduction in government cash balances with theRBI and the return flow of advance tax pay-ments. Despite the dated securities auc-tion outflows coinciding with the first reporting Friday, April 11, the overnight call rate dipped to 4.11 per cent as supplies exceeded the demand for funds. But the rate rose to 6.3 per cent on April 12 ahead of a long week-end. However, the call rates dipped to 6.17 per cent on April 17, but following the announcement of a hike in CRR, the rate jumped to 6.63 per cent on April 19 and then slipped to 5.99 per cent on April 24. Even on the second reporting Friday, April 25, the call rate ruled at 5.6 per cent despite the RBI undertakingMSS absorptions. Following the 25 basis points hike inCRR, the overnight rate rose to 6.57 per cent on April 26 and then dipped to 6.09 per cent on April 28. Following the
MONEY MARKET REVIEWEconomic & Political Weekly EPW may 17, 200833Appendix Table: Secondary Market Operations in Government Papers: NDS and NDS-OM Deals(Amount in rupees crore) Descriptions Week Ending April 2008: Yield to Maturity on Actual Trading Total for the Month 25 18 11 4 of April 2008 AMT YTM CY AMT YTM CYAMT YTM CY AMT YTM CYAMT YTM CY1TreasuryBills A 91-Day Bills 762.30 7.20 871.60 7.11 2266.54 6.83 195.30 6.52 4095.74 6.94 B 182-Day Bills 334.607.30212.517.17 315.105.96 246.246.67 1108.456.75 C 364-Day Bills 721.517.46394.377.19 1186.197.02 1827.937.03 4130.007.12 2 GOI Dated Securities A Regular (Per Cent: Year)12.00 , 2008 ---------10.00 8.0811.97 10.00 8.0811.9712.25 , 2008 ------0.047.2512.01 0.287.4412.01 0.327.42 12.01 5.48, 2009 725.00 7.86 5.62 25.00 7.76 5.62 1840.00 7.67 5.62 2125.00 7.51 5.61 4715.00 7.63 5.61 6.65,2009 1810.00 7.82 6.72 95.00 7.87 6.73 536.00 7.64 6.71 620.00 7.51 6.70 3061.00 7.73 6.72 6.96 , 2009 OMC SB 300.00 8.29 7.04 -------- 300.00 8.29 7.04 7.07 , 2009 OMC SB ------5.00 8.05 7.13 35.00 8.14 7.14 40.00 8.13 7.14 7.33,2009OIL MKT BONDS 140.00 8.50 7.40 - - - 100.00 8.00 7.37 60.00 7.95 7.37 300.00 8.22 7.39 7.33 , 2009 OMC SB 500.00 8.33 7.39 -------- 500.00 8.33 7.39 5.87,2010 561.69 7.94 6.07 395.19 7.87 6.06 3610.00 7.75 6.05 1176.00 7.57 6.04 5742.88 7.74 6.05 6.00 , 2010 UTI SB 10.00 8.55 6.25 -------- 10.00 8.55 6.25 7.50,2010 0.25 7.71 7.53 1.00 7.61 7.52 - - - 2.50 7.56 7.51 3.75 7.58 7.517.55, 2010 ------0.307.637.560.757.70 7.571.057.687.5711.30 , 2010 1564.68 7.9610.58 75.00 7.9410.57 438.50 7.8810.56 677.819.0010.77 2755.99 8.2010.6211.50 , 2010 ---------25.00 7.5710.67 25.00 7.5710.67 12.25,2010 315.00 7.97 11.30 155.00 8.00 11.30 80.00 7.85 11.26 150.00 7.55 11.19 700.00 7.87 11.2712.29 , 2010 ---------25.00 7.5711.39 25.00 7.5711.39 6.57, 2011 554.56 8.00 6.81 560.00 8.03 6.82 697.01 7.93 6.80 -- 1811.57 7.98 6.819.39 , 2011 795.008.069.065.008.03 9.05 -----800.008.069.0612.32 , 2011 0.098.38 11.25 --------0.098.38 11.257.40, 2012 ---------6.847.487.42 6.847.487.42 7.47,2012OIL MKT BONDS ---50.00 8.80 7.81369.00 8.78 7.80 --419.00 8.78 7.809.40, 2012 0.258.409.07 ---0.957.898.91 --1.208.008.94 7.27,2013 160.00 8.10 7.54 10.00 8.06 7.53 675.00 7.87 7.47 1205.00 7.77 7.43 2050.00 7.83 7.45 12.40 , 2013 0.03 8.40 10.61 ------11.25 7.74 10.32 11.28 7.74 10.32 7.37,2014 270.00 8.11 7.64 5.00 8.03 7.61 90.00 7.90 7.56 199.16 7.85 7.54 564.16 7.98 7.5911.83 , 2014 0.158.4010.11 ---90.00 7.949.898.067.759.79 98.21 7.939.88 7.38,2015 874.62 8.15 7.70 3454.68 8.09 7.68 2729.25 8.03 7.65 228.35 7.86 7.58 7286.90 8.06 7.677.49 , 2015 ---------40.00 7.92 7.70 40.00 7.92 7.707.88, 2015FRB 225.007.82 7.8550.00 7.82 7.85 -----275.007.82 7.8511.50 , 2015 0.568.07 9.73 --------0.568.07 9.735.59, 2016 10.00 8.296.63 --------10.00 8.296.637.59, 2016 ---------60.20 7.917.7360.20 7.917.73 7.46,2017 30.85 8.20 7.81 0.50 8.39 7.93 0.10 7.93 7.70 6.50 7.85 7.66 37.95 8.14 7.78 7.49,2017 - - - 0.50 7.91 7.69 145.72 7.94 7.71 98.79 7.90 7.69 245.01 7.93 7.70 7.99,2017 2356.89 8.17 8.08 2036.70 8.07 8.0310212.74 7.96 7.9810134.74 7.92 7.9624741.07 7.98 7.98 8.07,2017 340.00 8.20 8.14 120.00 8.12 8.09 100.00 7.99 8.03 655.00 7.95 8.01 1215.00 8.04 8.066.25, 2018 ------1.307.947.0530.20 7.92 7.0431.50 7.92 7.048.24, 2018 8127.19 8.178.20 --------8127.19 8.178.205.64, 2019 ------3.008.106.831.508.30 6.944.508.166.876.05, 2019 ------1.008.217.178.517.97 7.07 9.517.997.086.35 , 2020 ------1.468.017.26 --1.468.017.26 7.94, 2021 5.00 8.52 8.31 ---10.00 8.34 8.20 -- 15.00 8.40 8.24 8.13 , 2021 OMC SB ---------10.00 8.76 8.55 10.00 8.76 8.555.87 , 2022 ------25.00 6.186.05--25.00 6.186.05 8.15 , 2022 FCI SB ---25.00 9.10 8.82 ---25.07 8.63 8.48 50.07 8.86 8.65 8.20,2022 223.16 8.47 8.38 - - - 242.48 8.32 8.29 188.30 8.24 8.23 653.94 8.35 8.30 8.35,2022 34.60 8.42 8.40 - - - 155.04 8.36 8.36 5.00 8.18 8.24 194.64 8.36 8.366.17, 2023 ---------4.668.147.43 4.668.147.43 8.01 , 2023 OMC SB 0.95 8.96 8.70 15.79 8.99 8.73 - - - 125.75 8.80 8.58 142.49 8.82 8.608.20, 2023 ---------30.00 8.228.2230.00 8.228.22 8.30 , 2023 FERT SB 174.23 9.16 8.93 390.96 9.10 8.89 93.26 8.90 8.74 221.51 8.78 8.65 879.96 9.01 8.82 8.03 , 2024 FCI SB 0.12 9.11 8.84 25.09 9.07 8.81 0.18 8.79 8.60 100.05 8.69 8.52 125.44 8.77 8.58 8.20 , 2024 OMC SB 5.60 9.13 8.89 ------71.10 8.71 8.58 76.70 8.75 8.60 7.95 , 2025 OMC SB 5.97 8.99 8.73 55.00 8.99 8.66 779.90 8.95 8.67 - - 840.87 8.95 8.67 8.40 , 2025 OMC SB 8.65 8.95 8.82 10.21 8.95 8.82 1859.14 8.95 8.82 - - 1878.00 8.95 8.82 7.95 , 2026 FERT SB 50.00 9.23 8.95 20.00 9.19 8.91 ----- 70.00 9.22 8.94 8.23 , 2027 FCI SB 11.00 8.97 8.82 193.05 9.01 8.85 33.30 8.98 8.83 12.54 8.64 8.56 249.89 8.99 8.838.26 , 2027 ---------75.00 8.258.2575.00 8.258.25 6.01,2028 18.00 8.78 8.10 2.76 8.27 7.70 2.50 8.49 7.87 2.00 8.52 7.90 25.26 8.67 8.026.13, 2028 ------0.62 8.35 7.810.148.30 7.770.768.34 7.80 7.95,2032 30.00 8.64 8.55 812.87 8.60 8.51 180.00 8.55 8.47 10.00 8.33 8.27 1032.87 8.59 8.50 8.01 , 2032 OMC SB ---------10.00 8.81 8.59 10.00 8.81 8.59 8.33,2036 2256.33 8.68 8.65 872.10 8.59 8.57 3449.80 8.58 8.56 2327.18 8.46 8.45 8905.41 8.57 8.55 Sub-total 22495.42 8.17 8.129461.40 8.23 7.9628557.59 8.10 7.69 20819.74 7.96 7.7381334.15 8.10 7.85 B RBI’s OMO: Sales 249.00 - - 131.00 - - 405.00 - - 66.00 - - 851.00 - - Purchase 205.00 - - 145.00 - - 390.00 - - - - - 740.00 - -Sub-total 454.00 --276.00 --795.00 --66.00 --1591.00 -- (A+B) 22949.42 8.17 8.12 9737.40 8.23 7.9629352.59 8.10 7.6920885.74 7.96 7.73 82925.15 8.10 7.853 MarketRepo 84146.21 52922.47 112817.50 50003.69299889.87 4 State Govt Securities 764.72 8.44 8.56 89.98 7.60 9.85 89.32 8.14 9.72 262.13 8.25 8.56 1206.15 8.31 8.74 Grand total (1 to 4) 109678.76 64228.33 146027.24 73421.03 393355.36 (-) Means no trading. YTM = Yield to maturity in percentage per annum. CY = Current yield in per cent per annum. SGL = (RBI’s) Subsidiary General Ledger. OMO = Open Market Operations. OMC SB = Oil Marketing Companies Special Bonds. NDS = Negotiated Dealing System. OM = Order Matching Segment. (1) Yields are weighted yields, weighted by the amounts of each transaction. (2) Current yield has not been worked out for treasury bills. (3) For Floating Rate Bonds (FRB’s) Current yields are based on the latest half-year yield determined in the auction.

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