IFCI has some infrastructure bonds open for purchase, and they give you a tax exemption on a limit of 20,000 per year. Scheme: http://www.ifciltd.com/Portals/0/IFCI%20Infra%20Bond%20Series%20I_IM_web.pdf 10 year bond, with no exit till five years, b…

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RBI’s latest notification: In terms of our Master Circular No. DBOD.BP.BC.18/21.04.141/2010-11 dated July 1, 2010 on ‘Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks’, securities acquired by banks…

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The wholesale price index is on fire yet again. The latest data – for May 1 – shows primary articles at 16.76% inflation, with the index widening 2.5% from just the week earlier to 299.5. (My earlier reports had some incorrect data for the midd…

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On friday, the new financial year’s first government bond auction for 12,000 crores failed; about 448 crores devolved on primary dealers. (101: Auctions are underwritten. So if there’s not enough demand, the dealers, who get a commission on the bon…

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RBI has put the borrowing calendar of GSecs for April-September 2010. The total borrowing is slated to be 287,000 cr. with 11,000 to 15,000 crores borrowed every single week. The current 10 year yield is about 7.74% and with the kind of supply coming u…

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Not the kind that involves invasive body searches, or certain dance bars. STRIPS is Separate Trading of Registered Interest and Principal of Securities – basically, taking the interest part of the security and buying or selling each one separately….

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Last Friday’s bond auction results (one, two) are:

New 10 year bond (6.9%) for 6,000 cr. : fully subscribed
6 year 2015 at 6.55% yield, 5000 cr.: fully subscribed
15 year 2024 bond, 7.45% yield, 2000 cr. : fully subscribed
25 year 2034 bond, 7.98…

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After weeks of full subscription to the 15,000 crore weekly bond issuances, last Friday’s bond sale was not fully subscribed. Around 900 cr. could not be sold, and devolved on the primary dealers. (That means, the primary dealers had to pay up because …

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