A currency market sentiment called the Rupee

Each policy announcement / ratification is being followed by a spurt in the depreciation of the rupee starting with $20-$25 B impact from infra ECB and GSEcs on monday, another from OFS today  and in the fixed Incomemarkets because at least INR 2.2 T is coming up for redemption already in 2022 and till that is solved additional supply of 10 year bonds is unlikely. Till themn pressure will shift to 12 year and 5 year bonds. RBI would still be introducing another INR 70B of the 10 Y benchmark (8.05%) in tomorrow’s auction

One thought on “A currency market sentiment called the Rupee

  1. The 10 is underpriced at 8%, it should be atleast 12-14% considering India’s Central Government borrowings are 55% of GDP with more borrowings in the pipeline. It is useless to stop containing the rate because investors will not only lose the pricipal in the end of 10 years, atleast they should get compensated by higher interest in the meanwhile.

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