Apr
19

HSBC Sees India Yield Dropping to 7% as Rajan Gets Cash Flowing

By
  • Three-month treasury bill yield slides to lowest since 2010
  • Interbank rate averages 6.62% in April, versus 7.19% in March

Reserve Bank of India Governor Raghuram Rajan’s measures to tackle a cash squeeze are starting to bear fruit.

A benchmark overnight interbank rate has averaged 6.62 percent this month, 57 basis points lower than in March, data compiled by Bloomberg show. HSBC Holdings Plc sees money-market costs falling further as the RBI buys bonds in the open market, predicting the 10-year sovereign yield will drop to 7 percent by year-end, a level last seen in 2009…

HSBC Sees India Yield Dropping to 7% as Rajan Gets Cash Flowing

Share
Categories : Uncategorized

Leave a Reply

You must be logged in to post a comment.