BackFIMMDA proposes bond trading limits based on yield
FIMMDA proposes bond trading limits based on yield
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Mumbai: India’s Fixed Income Money Market and Derivatives Association will recommend to the central bank that it changes the basis for determining daily bands for trading government bonds to yield from price, three sources with direct knowledge of the matter said.
FIMMDA will recommend a trading band of 25 basis points from previous day’s closing yield for bonds with a tenor of two years and more, the sources said. It will recommend a band of 50 basis points for bonds with tenor below two years, they said.
Currently, the band is set at 1% of the previous day’s closing price.
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