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MARKET EYE-Indian cash rates edge down due to redemption, govt spending
May 30, 2013 / 10:08 AM / 4 years ago

MARKET EYE-Indian cash rates edge down due to redemption, govt spending

* Indian overnight cash rates edge down to 7.00/7.10
percent from their Wednesday close of 7.25/7.30 percent as funds
released into the system due to a bond redemption.
* The 9.81 percent 2013 bond matures on Thursday for a total
amount of 115.40 billion rupees.
* Traders say dollar outflows due to defence spending by the
government also pushing down the cash/tom rates in the onshore
forwards market and indirectly pushing call rates down.
* Some banks also likely to have borrowed more from the central
bank's repo window earlier in the day and offloading via the
CBLO market or the cash market, traders say.
* Cash rates are expected to hold between 7 percent and 7.50
percent on the reporting day on Friday. For bank borrowings from
the repo window on Thursday see: 

 (swati.bhat@thomsonreuters.com/;
swati.bhat.thomsonreuters.com@reuters.net)

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