In a first: RBI conducts two VRRR auctions in one day

Tactical investors should have an investment horizon of around six months to one year, long-term investors should stick around for 10 years or more. IMAGE: Kindly note the image has been posted only for representational purposes. Photograph: Kind courtesy Towfiqu barbhuiya/Pexels.com   Long-duration funds have outperformed all other debt fund categories over the past year, delivering an average return of 9.8 per cent. Investors need to understand the risks in these funds and choose an ...

The need for money among banks, especially for short-term funds, may turn more intense in the last month of the financial year to feed the demand for capital for tax payments and meet year-end targets. Photograph: PTI Photo from the Rediff Archives The mobilisation of funds via the certificate of deposits (CDs) has seen a threefold increase to over Rs 60,000 crore in the fortnight that ended February 23 from around Rs 20,000 crore in the fortnight of January 26, 2024, according to the Reserve ...

The liquidity in the banking system moved into surplus almost after three months as the Reserve Bank of India (RBI) absorbed over Rs 40,000 crore from the market on Monday, predominantly on the back of increased government spending. Illustration: Uttam Ghosh/Rediff.com However, this situation may be short-lived given the higher demand for funds to pay taxes and year-end targets, treasury executives said. Meanwhile, two variable reverse repo rate (VRRR) auctions held on Tuesday received weak ...

Short-term government bonds fell behind longer-dated securities in demand this month so far due to a liquidity crunch in the banking system and expectations of a delay in a rate cut, said market participants. Illustration: Dominic Xavier/Rediff.com Investors have favoured longer-tenure government bonds, or g-secs, with insurance companies and pension funds leading the charge by stocking up on those with maturities of 30 years and more. Preference for longer-term securities was strengthened by ...

'Your decisions should not be driven by your view on the market, but by your objectives, risk appetite, and time horizon.' Illustration: Dominic Xavier/Rediff.com   The Interim Budget sprang a positive surprise on the fiscal deficit front, infusing buoyancy in the bond markets and bringing bond yields down. The 10-year benchmark bond yield fell by 8 basis points to 7.06 per cent on February 1. Financial advisors believe that debt funds are in a sweet spot. "The Interim Budget gave bonds a ...