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Treasury Bills

 
Treasury Bills are money market instruments offered to finance short term debt obligation of the Government of India. These short term instruments aid in pluging in the short term liquidity mismatches of the Central Government. In simple words, it acts as the working capital of the Central Government.
 
Treasury Bills, or T-Bills as they are colloquially called, are generally issued for a tenor of 91 Days, 182 Days and 364 Days. These are discounted instruments i.e. they are issued at a discount to par value. On maturity, they are redeemed at par value, with the difference between the discounted rate (at the time issuance) and maturity value being the return earned on such investments. The minimum amount in which they can be traded is Rs 25,000.
 
Just as in case of Dated G-Secs and SDLs, non competitive bidding is allowed in T-Bills. However, participation in the same is restricted only to State Governments, eligible Provident Funds, select foreign central banks and is not available to the co-operative banks for proprietary bids. Also, in case of T-Bills, the amount accepted for non-competitive bids is over and above the notified amount and no limit has been placed on the maximum amount that can be bid under this facility.
 
The trading and settlement mechanism for T-Bills transactions is similar to those for Dated G-Secs and SDLs. Moreover, it qualifies as an SLR investment and can also be used as collateral in repo transactions.
 
Clients interested buying/selling T-Bills may contact our Sales Personnel on 022-66202224/25/28. We endeavor to provide the best possible returns to our clients, keeping in line with their overall investment objectives.
 

Latest News

In its Fifth Bi-Monthly
In its Fifth Bi-Monthly Monetary Policy for FY19, the MPC-panel maintained ‘status quo’. Consequently, key policy rates remained unchanged - Repo rate at 6.50%, Reverse repo at 6.25% and MSF at 6.75%.
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Inflation projections for
Inflation projections for 2018-19 were revised downwards as food inflation has remained benign. It is projected at 2.7%-3.2%% in H2 FY19 (3.8%-4.5% previously) and 3.8%-4.2% in H1 FY20.
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Growth for FY19
Growth for FY19 is projected at 7.4% with 7.2%-7.3% in H2 FY19 (7.3%-7.4% previously). Growth in H1 FY20 is projected to stand at 7.5%.
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RBI in its February policy
RBI in its February policy cut the repo rate by 25 bps while also changing the stance to ‘neutral’ from ‘calibrated tightening’. Consequently, key policy rates are pegged as follows - Repo rate at 6.25%, Reverse Repo at 6.00% and Marginal Standing Facility (MSF) at 6.50%
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The inflation projections
The inflation projections have been revised downwards to 2.8% in Q4 FY19 (from 2.7-3.2% earlier), 3.2-3.4% in H1 FY20 (from 3.8-4.2% earlier) and 3.9% in Q3 FY20
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GDP growth for FY20
GDP growth for FY20 has been projected at 7.4% - in the range of 7.2-7.4% in H1 (from 7.5% earlier) and 7.5% in Q3.
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Spurring a positive surprise
Spurring a positive surprise, Jan CPI stood significantly lower than market expectations at 2.05% vis-à-vis the revised Dec-18 estimate of 2.11% (2.19% previously). Lack of inflationary pressures in the services components led core CPI to also moderate, clocking in at 5.38%, a sharp fall from 5.68% in Dec-18.
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Industrial production rose
Industrial production rose by 2.4% in Jan-19 as compared to 0.3% in Feb-18. Cumulatively, IIP for FY19 stood at 4.6%, lower than 3.7% in FY18. Significant sequential uptick was observed across sectors; Mining (3.4%), Electricity (2.1%) and Manufacturing (6.8%)
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Wholesale inflation for Jan-19
Wholesale inflation for Jan-19 came in at 2.76%, lower than 3.80% registered in Dec-18. Broad-based fall in commodity prices amid deflationary pressures from food and fuel items led to this downtick in inflation. Consequently, core WPI inched down to 2.91%, as compared to 4.22% in Dec-18.
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