Bid for India's debt limit auction: Barclays Capital

Mon Feb 18, 2013 12:17pm IST

An employee uses an electronic machine to check a rupee note inside a bank in Allahabad December 16, 2011. REUTERS/Jitendra Prakash/Files

An employee uses an electronic machine to check a rupee note inside a bank in Allahabad December 16, 2011.

Credit: Reuters/Jitendra Prakash/Files

Related Topics

Reuters Market Eye - Barclays Capital advises foreign institutional investors (FIIs) to bid for the long-term government debt category in auction and buy 30-year government bonds, given the potential for further monetary easing and likelihood of bond purchases via OMOs, among other factors.

India is due to auction 666 billion rupees in debt limits on Wednesday, the last auction ahead of the Reserve Bank of India's (RBI) next policy review in March.

FIIs with licences can participate in these monthly auctions for corporate and government bonds, purchasing quotas which provide them with the right to invest in debt up to the limit bought.

BarCap also advises FIIs to bid for the corporate debt old category in the auction and buy 6-month to 1-year corporate bonds at high yields, as liquidity tends to seasonally tighten in March.

Barclays expects government bond yields to fall 55 bps, in line with another 75 bps of repo easing by the end of June.

(Reporting by Subhadip Sircar)

FILED UNDER:

Reforms Push

REUTERS SHOWCASE

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

26/11 Plotter

26/11 Plotter

Pakistan to challenge bail for Mumbai attack "mastermind".  Full Article 

Chinese Economy

Chinese Economy

China revises up size of 2013 economy, sees no effect on 2014 growth.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage