RBI lives up to its reputation Jul 29, 2009
Year-on-year broad money growth is 20% and likely to grow further as a consequence of the RBIs open market operations. In a scenario where GDP is expected to grow at 6%, even assuming an upward bias, the kind of growth in money supply should be more than adequate to oil the wheels of the economy. (India Times)
Nomura Announces it has Become a U.S. Primary Dealer Jul 28, 2009
Primary Dealers serve as counterparties in open market operations, participate directly in Treasury auctions and provide analysis and market information to trading desks at the Federal Reserve Bank of New York. NSI is a registered U.S. broker-dealer and a member of SIPC.. (PR Newswire)
Unusual times call for Bernanke measures Jul 26, 2009
Then there's the old-fashioned way of tightening policy: open-market operations. The Fed can sell some of the assets it purchased, or conduct reverse repurchase agreements, which have the effect of draining reserves from the banking system on either a permanent or temporary basis. (Business Report, South Africa)
Bernanke Takes Message, Shows Exit to the People: Caroline Baum Jul 22, 2009
Then theres the old-fashioned way of tightening policy: open-market operations. The Fed can sell some of the assets it has purchased, or conduct reverse repurchase agreements, which have the effect of draining reserves from the banking system on either a permanent or temporary basis. (Bloomberg -- Columnists)
Son of Sherman McCoy Helps Fed Field New Masters for Treasury Bond Dealing Jul 21, 2009
Primary dealers serve as counterparties in open market operations, the central banks mechanism for maintaining its for overnight loans between banks. They are also expected to bid when the Treasury sells bills, notes and bonds. (Bloomberg)
Nigeria: CBN Relaxes Lending Guidelines to Boost Liquidity Jul 21, 2009
com: Nigeria: CBN Relaxes Lending Guidelines to Boost Liquidity (Page 1 of 1). Nigeria: CBN Relaxes Lending Guidelines to Boost Liquidity. (allAfrica.com)
Bond yields up ahead of debt supplies Jul 20, 2009
The central bank has said it will ensure there is ample liquidity in the banking system and will keep buying bonds from the market through its open market operations. Dealers are expecting the central bank to announce a buyback auction this week, in line with its purchases on alternate weeks, which is supporting prices. (India Times)
RBI's job got much tougher Jul 20, 2009
Prima facie, the finance secretarys statement that approximately half the borrowing would be completed through open market operations (OMOs) by the RBI and subsequent clarification that OMOs do not mean monetisation should have calmed markets. Strangely, they did not. (India Times)
China's asset bubble to grow bigger Jul 18, 2009
The Peoples Bank of China has pushed up money market rates and is conducting more vigorous open market operations; the banking regulator has ordered banks to cease lending frenzies that dress up their balance sheets at the end of every month; and some cities have tightened mortgage rules for second homes. But this is finger-wagging, not a slap across the face. (India Times)
China taps on brakes as money supply surges Jul 16, 2009
Other steps in recent weeks by the central bank indicating that monetary loosening is over, even if outright tightening has not yet begun, include the resumption of one-year bill sales and an increase in yields in its open market operations. The broad M2 measure of money supply grew at a record pace of 28. (The Star Online, Malaysia -- Business)
Sorry,00004000 FM, its monetisation Jul 16, 2009
Finance minister Pranab Mukherjee says the Reserve Bank of India will support half the governments borrowing programme of Rs 398,000 crore through open market operations. This, he claimed was not monetisation, which he defined as the RBI directly buying government debt at market rates. (India Times)
'Selloff roadmap in 3-4 weeks' Jul 16, 2009
41 lakh crore it has planned through open market operations. He said the borrowings would be against treasury bills and officials of the finance ministry and RBI are meeting on Thursday to work out a detailed plan. (India Times, India -- Intl Business)
A Force of One: The Federal Reserve Jul 15, 2009
Its open market operations and dealings with central banks and foreign powers at the very least must have oversight. But you can bet that Nancy Pelosi and Harry Reid are going to fight to prevent the passing of any legislation that regulates the Federal Reserve, because they are in cahoots with the White House and also don't want the trade secrets of the Federal Reserve revealed nor its power restricted. (Human Events Online)
Money market round-up Jul 13, 2009
RBIs open market operations (OMO), however, disappointed traders with the central bank buying back only 1/5th of the total amount and traders eyed the government auction for further cues. Outlook: Weakness and uncertainty will continue to exist, especially impacting the longer end of the curve. (India Times)
China Fails to Attract Enough Buyers in Government Debt Sales, Traders Say Jul 10, 2009
The central banks open-market operations suggest concerns that the rapid surge in new bank lending in the first half of this year could fuel inflation, said , an economist at Oversea-Chinese Banking Corp. in Singapore. Some people speculate the central bank will raise interest rates this year but I dont think they can as global growth slows. (Bloomberg -- Asia)
RBI to buy back Rs 7,500 cr bonds Jul 9, 2009
"US yields are down and oil is 00004000 trading lower, so global cues are positive. However there is nervousness about how much the RBI will buy back in the open market operations today," said a dealer at ICICI Securities Primary Dealership. The benchmark 10-year bond which registered only Rs 25 cr in volumes was at 6. (India Times)
Research in Motion Ltd., Royal Bank: Canadian Equity Preview for July 8 Jul 8, 2009
Primary dealers serve as counterparties in open market operations and are expected to bid when the Treasury sells bills, notes and bonds. To contact the reporter on this story: in New York at. (Bloomberg -- Canada)
China's $4.1 Billion Auction of Yuan Debt Falls Short on Inflation Concern Jul 8, 2009
The on the 28-day bill repurchase agreement climbed 10 basis points in open market operations in the past week to 1 percent, after being unchanged for six months. The seven-day repurchase for loans between banks was fixed at 1. (Bloomberg -- Asia)
U.S. Fed Names RBC Capital Markets Second New Primary Bond Dealer in 2009 Jul 8, 2009
Primary dealers serve as counterparties in open market operations, the central banks mechanism for maintaining its for overnight loans between banks. Primary dealers also are expected to bid when the Treasury sells bills, notes and bonds. (Bloomberg -- Canada)
COMMENT: Casting A Wide Net Jul 7, 2009
There is already enough liquidity in the credit market and the RBI can further support this through open market operations, so it is unlikely that private investment will be crowded out through upward pressure on interest rates. However, servicing an additional public debt of nearly 20 per cent of GDP added during the last two years imposes a huge pre-emptive claim on future spending, with a real risk of crowding out public investment on infrastructure and social overheads like education and... (India Times, India)
Bond yields high on supply concerns Jul 7, 2009
"Based on the new borrowing program, the impact on yields would to a large extent be determined by the RBIs stance on open market operations," said Rohini Malkani, an economist with Citigroup India. 00004000 "With growth being the key priority for the government, we expect the RBI to continue to play a bigger role in the borrowing program. Given the levers that the RBI has coupled with the likely cushion from tax collections and divestments, 10-year bond yields could stay under 7.50%," she... (India Times)
Reserve Bank of India Governor Subbarao Says There's No Risk of Deflation Jun 21, 2009
I cant say exactly whether we will increase open-market operations or we will do MSS unwinding, or something else, Subbarao said, referring to the Market Stabilization Scheme. But we will manage the government borrowing program in a non- disruptive manner. (Bloomberg -- Asia)
RBI to auction Rs 15k cr bonds today Jun 19, 2009
These buy back transactions are called Open Market Operations, 00004000 or OMO in market parlance. "RBI was very generous with the prices at yesterday's buy back. Sentiment for bonds is strong today," said a dealer at a large South based public sector bank. (India Times)
More >> Jun 18, 2009
Three promoters of wind power major Suzlon Energy Rambhaben Ukabhai, Girish Tanti and Nidhi Tanti sold a combined stake of 60 million shares, or 4%, in the company for Rs 524 crore through open market operations in the last week of May. With this, total promoter holding in Suzlon Energy fell to around 59% from 66% as on March 31, 2009. (India Times)
Changes await return of traditional economy May 30, 2009
"The Federal Reserve has attempted to maintain this separation while extending the range of our open market operations and discount window lending," he said. "But changing policy interaction and greater cooperation between fiscal and monetary authorities have been an inevitable aspect of effective policy initiatives to meet our macroeconomic objectives in the current financial and economic crises.". (Daytona Beach News Journal -- Local)
AVB may not buy L&Ts 11.5% stake in UltraTech May 29, 2009
The same agreement also made it clear that in case the Birlas do not exercise their rights, Lthe liberty to sell its shares to financial investors through open market operations. L however, not allowed to sell the shares to strategic investors. (India Times)
* Why an eclectic and rapid response to the economic crisis is vital May 7, 2009
Thus, expansionary monetary policy via standard open-market operations by a central bank is the first item on the checklist of what to do in a financial crisis. Three months ago, I argued that all but a tiny and unbalanced fringe of economists approve of expansionary open-market operations to keep total nominal spending constant in a downturn, and I was right ... The problem comes when expansionary monetary policy via standard open-market operations and central-bank guarantees of orderly markets... (Taipei Times, Taiwan -- Sports)
`Masters of Universe' Find Opportunity in Crisis May 5, 2009
These are the banks and securities firms that deal directly with the Federal Reserve in its open market operations and are required to bid at Treasury auctions. The primary dealer system was created in 1960 with 18 members. (Bloomberg -- Columnists)
The mirage of recovery May 5, 2009
Bernanke has simply dismissed traditional central banking and decided, based on his own Great Depression doctrine, to go beyond the twin mandates that were prescribed by the Congress and to create high-risk instruments that go beyond traditional government bonds held by a central bank for open market operations. No central bank has the mandate to lend directly to non-depository banks or to the private sector. (Asia Times Online)
Black-hole balance sheets May 1, 2009
Could it be that high bond values are artificially maintained, for example by tempting bond speculators to the long side of the market with risk-free profits, and threatening those on the short side with sudden death - the essence of open market operations as I have long suggested. This time we shall find out. (Asia Times Online)
NY Fed names Brian Sack to lead markets group Apr 20, 2009
In his new role, he will oversee domestic open market operations and foreign exchange trading operations, helping the government in its efforts to end one of the worst credit and financial crises in the nation's history. Sack received his Ph. (Fresno Bee -- Business)
READ THE MINUTES: FOMC meeting of March 17-18 Apr 9, 2009
The Manager also reported on System open market operations in Treasury securities and in agency debt and agency mortgage-backed securities (MBS) during the period since the Committee's January 27-28 meeting ... There were no open market operations in foreign currencies for the System's account during the period since the Committee's January 27-28 meeting ... In the discussion of monetary policy for the intermeeting period, Committee members agreed that substantial additional purchases of... (USA Today -- Money)
RBI may cap reverse repo bids Apr 9, 2009
Until 9 pm on Wednesday, RBI did not give any details of its open market operations, although it was scheduled to have bought bonds worth Rs 6,000 crore. The rupee recovered sharply, late on Wednesday afternoon, ending the day just 14 paisa below the Mondays close at 50. (India Times)
Bond yields drop; auction watched Apr 2, 2009
Dealers said the news was mildly positive, at a time when the market was facing a huge wall of supplies with little or no respite from the central bank's open market operations. At 10:45 a.m. (0515 GMT), the yield on the benchmark 2019 bond was at 6. (India Times)
Bonds trading weaker Mar 25, 2009
"There is a growing feeling in the market that the government would have to opt for private placement of bonds since open market operations have had a mixed record," says Ramanathan K, head of fixed income at ING MF. "All eyes are now on that," he said. Liquidity marginally eased on Thursday with call money trading at a weighted average of 4. (India Times)
Bond yields seen higher Mar 16, 2009
MUMBAI: Bonds have rallied strongly after RBI said it will buy Rs 20,000 crores of existing debt this week via open-market operations. Rupee is trading stronger in line with other Asian currencies on back of gains in stocks despite importers buying dollars. (India Times)
Rupee strengthens, bond sharply up Mar 6, 2009
"Going by its purchases in the open market operations and miniscule purchases in the secondary market, it is evident that RBI is not using its full ammunition to stabilise the market," says Ashish Vaidya, head of interest rate trading at HDFC Bank. "All those people who missed out in the buy back are under real pressure. The mood is not good.". (India Times)
'RBI steps toward quantitative easing' Mar 5, 2009
For a more accommodative policy, Goldman expects the RBI to move towards more quantitative easing through open market operations. It also expects the RBI to cut the CRR of banks by another 150 bps by mid-2009. (India Times)
Bond yields flat Mar 4, 2009
MUMBAI: Central bond yields were largely steady on Wednesday, as market awaited details of bonds the central bank plans to buy back through its open market operations scheduled on March 5. At 9:08 am, the yield on the 8. (India Times)
Bond yields at 1-wk low Feb 27, 2009
Traders also awaited details of the central bank's open market operations to buy back bonds in the coming weeks. Bond dealers on Thursday asked India's central bank to publish a calender of its buyback auctions and step up buying bonds in the secondary market to ensure ample liquidity and check rising yields. (India Times)
RBI's open market move sends mixed signals on rates Feb 23, 2009
MUMBAI: At a time when it is hinting at interest rate cuts, central banks action in its first open market operations (OMO) on Thursday caused a flutter in the bond market ... Under the open market operations, the Reserve Bank of India (RBI) buys back bonds from investors such as banks, primary dealership and mutual funds, to address concerns over oversupply of government bonds in the wake of governments higher-than-anticipated borrowings. (Economic Times)
Bond yields fall 7 basis points Feb 19, 2009
MUMBAI: Federal bond yields fell 7 basis points on Thursday as market sentiment was boosted after the central bank's open market operations' details were in line with market expectations. At 9:03 a.m., the yield on the 8. (India Times)
Printing money to boost asset prices? Feb 16, 2009
The first and most common way is through open-market operations where the Fed buys bonds from a bond dealer. The cash balance will be electronically created and credited into the dealers bank and the bank would lend out the cash. (The Star Online, Malaysia -- Business)
Bonds trading in narrow range Feb 13, 2009
The first auction under open market operations will be held on February 19. The rupee is trading largely lacklustre these days. (India Times)
Nigeria: CBN Set to Float N200 Billion Agriculture Bond Feb 13, 2009
This is because agriculture plays a major role in the country's economic development, especially in boosting the country's GDP" he noted. He disclosed that among other policies aimed at cushioning the effect of the global credit crunch, is the apex bank decision to sustain the Monetary Policy Rate (MPR) at 9.75 per cent and provide increased access to credit facilities to banks through the expanded discount window. He stated that credit to the private sector grew by over 60 per cent in January... (allAfrica.com)
Fed in Talks to Add New Dealers, Including RBC Capital, as Debt Sales Rise Feb 13, 2009
Open Market Operations ... Primary dealers serve as counterparties in open market operations, the central banks mechanism for maintaining its for overnight loans between banks. (Bloomberg -- Canada)
Fiscal stimulus comes at a cost Feb 12, 2009
It can, at best, prime the market through open market operations to ensure the best (read lowest) rate of interest on government debt. This is a tricky business at the best of times and will test all the central banks acumen at times like now when conditions are anything but normal. (India Times)
Nigeria: Govt to Enforce Official Exchange Rate Feb 10, 2009
Similarly, the apex bank has also resolved to actively use open market operations (OMO) to mop up excess liquidity from the system with a view to achieving effective liquidity management. Briefing newsmen on the outcome of the meeting of the monetary policy committee (MPC) yesterday in Abuja, the CBN Governor, Professor Chukwuma Soludo, said concerned with achieving multiple objective of sound financial system, price and exchange rate stability, as well as ensuring that credit continues to flow... (allAfrica.com)
Public Information Notice: IMF Executive Board Concludes 2008 Article IV Consultation withBolivia Feb 9, 2009
In the period through September, the central bank stepped up open market operations, mainly through greater placement of indexed instruments ... In particular, they encouraged the central bank to conduct open market operations in a manner consistent with bringing about positive real interest rates on non-indexed bonds, and thereby eliminate the incentive for indexation. (IMF News)
Lawrence Kudlow Feb 8, 2009
Mr. Kudlow began his career as a staff economist at the Federal Reserve Bank of New York, working in the areas of domestic open market operations and bank supervision. Mr. Kudlow was educated at the University of Rochester and Princeton Universitys Woodrow Wilson School of Public and International Affairs. (Townhall.com)
