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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Our government is going to issue a truckload of bonds next year, so let’s see where we are right now with respect to current bonds outstanding. Total Bonds Issued: 18,26,501 cr. (18.26 trillion, excludes MSS of 2000 cr.) Total Interest we w…

Posted in Credit Repair, Debt, Gilts, InterestRates Comments Off

RBI’s 12,000 cr. auction today was undersubscribed – meaning, not enough buyers – to extent of 912 cr., or 7.6% of the auction amount.

This devolves on the primary dealers – who will need to pay up. Funny thing is – the 7 6 year bond, a 2015 gilt, was…

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I’ve been holding on to the gilt fund for a while and I’m sick of it – the yields are going up and prices are falling. At 7.18% it’s the lowest I’ve seen for a while, and I am getting out of half my position. Why am I leaving half in there? Just a feel…

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