Indian rate swaps rise as cash outflows weigh

Indian rate swaps rise as cash outflows weigh
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First Published: Thu, Sep 13 2007. 01 14 PM IST
Updated: Thu, Sep 13 2007. 01 14 PM IST
Reuters
Mumbai: Indian overnight indexed swaps rose on Thursday, 13 September, ahead of cash outflows toward the previous day’s treasury bill auction and tax payments by companies in the coming days.
At 12:55pm, the five-year overnight indexed swap was at 7.16-7.18%, up from the previous close of 7.12-7.14%.
“Investors are a bit tense about liquidity. So, we could see swaps moving up in the coming days,” a state-run bank trader said.
The Reserve Bank of India sold T-bills worth Rs65 billion (Rs6,500 crore, $1.6 billion) on Wednesday, payments for which are due on Friday. Outflows of around Rs350 billion are expected to take place from the end of this week for corporate taxes.
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First Published: Thu, Sep 13 2007. 01 14 PM IST