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☆ Huawei’s comeback gathers pace as quarterly profit surges
▼ + stars: | 2024-05-01 | by ( ) edition.cnn.com time to read: +2 min

Beijing Reuters —Huawei Technologies’s net profit leapt 564% to 19.65 billion yuan ($2.71 billion) in the first quarter, a regulatory filing by its parent company showed on Tuesday, as it continues to recover from US sanctions. Huawei’s revenue for the quarter to the end of March rose 37% to 178.5 billion yuan, the filing to China’s National Interbank Funding Center showed. It did not break down how business units, such as consumer and smart car components, performed. Apple’s share in the world’s biggest smartphone market fell to 15.7% in the first quarter from 19.7% a year earlier. It has become a force in smart car technology too, with its driver assistance system touted by at least seven Chinese automakers at the Beijing auto show.

Persons: “ digitalization, decarbonization ”, Counterpoint Organizations: Beijing Reuters, Huawei, Apple Locations: Beijing

☆ UK Libor trader Hayes loses appeal against rate-rigging conviction
▼ + stars: | 2024-03-27 | by ( ) www.cnbc.com time to read: +1 min

Thomas Hayes, a former trader at banks including UBS Group AG and Citigroup, on Aug 3, 2015. Tom Hayes, the first trader jailed worldwide for interest rate rigging, lost his appeal against his conviction in a London court on Wednesday. Hayes, a former star Citigroup and UBS trader, was convicted in 2015 of conspiracy to defraud by manipulating Libor, a benchmark rate once used to price trillions of financial products globally. His appeal against his conviction was heard alongside that of Carlo Palombo, a former Barclays trader convicted in 2019 of skewing Libor's euro equivalent, Euribor. Hayes and Palombo were given 14 days to apply for permission to appeal to the Supreme Court.

Persons: Thomas Hayes, Tom Hayes, Hayes, Libor, Carlo Palombo, Palombo's, David Bean, Palombo Organizations: UBS Group AG, Citigroup, UBS, Prosecutors, London, Barclays, Deutsche Bank, Supreme Locations: London, U.S

☆ Bank of America shares fall after company reports lower fourth-quarter profit, hit by regulatory charge
▼ + stars: | 2024-01-12 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Bank of America shares fell 1.1% Friday after the firm reported declining fourth-quarter earnings amid hefty one-time charges. Here's what the company reported compared to Wall Street expectations, according to LSEG, formerly known as Refinitiv:Earnings per share: 70 cents, adjusted vs. 68 cents expected. 70 cents, adjusted vs. 68 cents expected. Revenue: $22.1 billion vs. $23.74 billion expected. Bank of America stock is down 2.6% this year after a mere 1.7% gain in 2023.

Persons: Brian Moynihan Organizations: of America, Revenue, Bank of America, London, Federal Deposit Insurance Corporation, Valley Bank, Signature Bank, CNBC PRO Locations: Charlotte , North Carolina

☆ What is the federal funds rate?
▼ + stars: | 2023-11-28 | by ( Karen Fernandez | Richard Richtmyer | ) www.businessinsider.com time to read: +8 min

Set by the Federal Reserve, the federal funds rate is the interest banks charge each other to borrow money overnight. The federal funds rate (or fed funds rate, for short) is only used between banks. The federal funds rate is an interbank interest rate. Federal funds rate FAQsWhat happens when the federal funds rate is high? Is the federal funds rate the same as the prime rate?

Persons: — Organizations: Federal Reserve, Service, Federal, Finance, Fed, Market, Fed's, Governors, Federal Reserve Bank

☆ ECB could take bigger role in supervising shadow banks, Enria says
▼ + stars: | 2023-11-28 | by ( ) www.reuters.com time to read: +2 min

European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo Acquire Licensing RightsFRANKFURT, Nov 28 (Reuters) - The European Central Bank may need to take on a bigger role in supervising shadow banks as they are now bigger than conventional lenders and may be sitting on elevated risk, the outgoing head of the ECB's supervision arm told European newspapers. "These are different animals to banks, so we shouldn’t expect to supervise them in the same way as we supervise banks." Taking on oversight of shadow banks would require legislative changes, a time consuming process even under the best of circumstances, and requiring broad political agreement. But some have argued that such a change could ease liquidity stress, particularly if shadow banks gained access to the ECB lending operations.

Persons: Ralph Orlowski, Andrea Enria, Expansión, Enria, Balazs Koranyi, Tomasz Janowski Organizations: Union, European Central Bank, REUTERS, Rights, prudential, ECB, Thomson Locations: Frankfurt, Germany

☆ China's money market shows signs of liquidity tightness towards month-end
▼ + stars: | 2023-11-27 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Tingshu Wang/File Photo Acquire Licensing RightsSHANGHAI, Nov 27 (Reuters) - Cash conditions in China's money market showed signs of tightness on Monday, as market participants grew cautious about month-end demand and a recent liquidity squeeze remained fresh in memory. The price of the benchmark seven-day repos traded in the interbank market, hit a high of 2.8% on Monday, the highest level since Oct. 31. Meanwhile, the borrowing cost of such repos for non-bank financial institutions was about 3.5%, according to traders. "Money that can help span the month-end has tightening bias, and it's expensive for non-banks," said a trader at a Chinese bank. NCDs has been a popular short-term debt instrument used by financial institutions in the interbank market for financing.

Persons: Tingshu Wang, repos, Liu Yu, NCDs, Kim Coghill Organizations: People's Bank of China, REUTERS, Rights, GF Securities, AAA, Reuters, Shanghai, Thomson Locations: Beijing, China

☆ China keeps lending benchmark rates unchanged, as expected
▼ + stars: | 2023-11-20 | by ( ) www.reuters.com time to read: +3 min

Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. The one-year loan prime rate (LPR) was kept at 3.45% and the five-year LPR was unchanged at 4.20%. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. The steady fixings came after the central bank kept its medium-term interbank liquidity rate unchanged last week. The LPR, which banks normally charge their best clients, is set by 18 designated commercial banks who submit proposed rates to the central bank every month.

Persons: Tingshu Wang, Julian Evans, Pritchard, Winni Zhou, Tom Westbrook, Sam Holmes Organizations: People's Bank of China, REUTERS, Rights, Capital Economics, Thomson Locations: Beijing, China, Rights SHANGHAI, SINGAPORE, United States, outflows

☆ Mastercard says wide adoption of central bank digital currencies would be ‘difficult’ right now
▼ + stars: | 2023-11-17 | by ( Sheila Chiang | ) www.cnbc.com time to read: +2 min

BARCELONA, SPAIN - MARCH 01: A view of the MasterCard company logo on their stand during the Mobile World Congress on March 1, 2017 in Barcelona, Spain. (Photo by Joan Cros Garcia/Corbis via Getty Images)SINGAPORE — There isn't enough justification for the widespread use of central bank digital currencies right now, which makes broad adoption of such assets "difficult," Ashok Venkateswaran, Mastercard 's blockchain and digital assets lead for Asia-Pacific, told CNBC. A retail CBDC, which is the digital form of fiat currency issued by a central bank, caters to individuals and businesses, facilitating everyday transactions. This is different from a wholesale CBDC which is used exclusively by central banks, commercial banks and other financial institutions to settle large-value interbank transactions. But a lot of the central banks nowadays have gotten very innovative because they are working very closely with private companies like ours, to create that ecosystem," said the Asia-Pacific lead.

Persons: Joan Cros Garcia, Corbis, Ashok Venkateswaran, Venkateswaran, Kong's Organizations: MasterCard, Mobile, Congress, Getty Images, Mastercard, CNBC, Singapore FinTech, Monetary Fund, Atlantic Council, Hong Locations: BARCELONA, SPAIN, Barcelona, Spain, SINGAPORE, Asia, Pacific, Singapore, U.S, Hong Kong

☆ Singapore to pilot use of wholesale central bank digital currencies in 2024
▼ + stars: | 2023-11-17 | by ( Sheila Chiang | ) www.cnbc.com time to read: +1 min

Ravi Menon, managing director of Monetary Authority of Singapore, speaks during the Singapore FinTech Festival in Singapore, on Thursday, Nov. 16, 2023. SINGAPORE — Come 2024, Singapore will pilot the live issuance and use of wholesale central bank digital currencies, said Ravi Menon, managing director of the Monetary Authority of Singapore. "I'm pleased to announce that MAS will pilot the live issuance of wholesale CBDCs to instantaneously support payments across commercial banks here," Menon said. MAS is the city-state's central bank and financial regulator. Wholesale CBDC is a digital currency issued by a central bank, that's used exclusively by central banks, commercial banks or other financial institutions to settle large-value interbank transactions.

Persons: Ravi Menon, Menon, I'm, that's Organizations: Monetary Authority of, Singapore FinTech Festival, Singapore FinTech, MAS Locations: Monetary Authority of Singapore, Singapore, SINGAPORE

☆ China expected to keep key lending rates unchanged next week
▼ + stars: | 2023-11-17 | by ( ) www.reuters.com time to read: +2 min

A man wearing a mask walks past the headquarters of the People's Bank of China, the central bank, in Beijing, China, February 3, 2020. In a poll of 26 market watchers, all participants predicted both the one-year LPR and the five-year tenor would stay unchanged. "The changes in LPR are more affected by the MLF rate," Zhou said, expecting the LPR to stay unchanged this month. The PBOC on Wednesday injected 1.45 trillion yuan ($200.12 billion) worth of one-year MLF loans into the banking system but kept the rates on those loans unchanged. Expectations of steady LPR fixings also come as new bank lending in China fell less than expected in October from the previous month.

Persons: Jason Lee, Zhou Maohua, Zhou, Winni Zhou, Wu Fang, Tom Westbrook, Sam Holmes Organizations: People's Bank of China, REUTERS, Rights, China Everbright Bank, Thomson Locations: Beijing, China, Rights SHANGHAI, SINGAPORE, United States, outflows, Shanghai, Singapore

☆ Amplify rolls out first SOFR-based ETF for income seekers
▼ + stars: | 2023-11-15 | by ( Suzanne Mcgee | ) www.reuters.com time to read: +2 min

The Amplify Samsung SOFR ETF , which debuted Wednesday, is the first ETF to track SOFR, the overnight interbank lending rate that has emerged as the U.S. replacement for the now-defunct Libor gauge of overnight borrowing interest costs. The new fund's launch comes amidst a wave of enthusiasm for ultra-short term fixed income ETFs, as yields on products throughout the fixed income spectrum have risen to multi-year highs following an aggressive rate hiking cycle by the Federal Reserve. "It wasn't until this year that rate-driven products became priorities," said Bill Belden, president of Amplify. Flows into money market and ultra-short term products account for about 36% of all inflows into fixed income ETFs this year, though the category represents only 15% of all fixed income ETF assets, according to Matthew Bartolini, head of product research at State Street Global's SPDR Americas ETF division. Belden said that a large institutional investor has provided seed capital of $50 million for the new ETF.

Persons: Yves Herman, Bill Belden, Matthew Bartolini, SOFR, Belden, Suzanne McGee, Ira Iosebashvili, Cynthia Osterman Organizations: Samsung, REUTERS, ETF, Federal Reserve, Thomson Locations: Brussels, Diegem, Belgium, U.S, Americas

☆ China c.bank boosts liquidity injection through policy loan, rate unchanged
▼ + stars: | 2023-11-15 | by ( ) www.reuters.com time to read: +4 min

A gardener works outside the headquarters of the central bank of the People's Republic of China in Beijing October 8, 2008. REUTERS/Jason Lee (CHINA) Acquire Licensing RightsSHANGHAI/SINGAPORE, Nov 15 (Reuters) - China's central bank ramped up liquidity injection but kept the interest rate unchanged when rolling over maturing medium-term policy loans on Wednesday, matching market expectations. The central bank said the loan operation was meant to maintain banking system liquidity reasonably ample to counteract short-term factors including tax payments and government bond issuance. All 31 market watchers polled by Reuters this week had expected the central bank to inject fresh funds to exceed the maturity. The most likely outcome is for PBOC to inject more support through open market operations, while leaving the MLF rate unchanged."

Persons: Jason Lee, Carlos Casanova, corporates, Xing Zhaopeng, Winni Zhou, Tom Westbrook, Christian Schmollinger, Stephen Coates Organizations: REUTERS, Rights, People's Bank of China, Reuters, AAA, ANZ, Thomson Locations: People's Republic of China, Beijing, China, CHINA, Rights SHANGHAI, SINGAPORE, Asia, UBP, United States

Peng Zhao, CEO, Citadel Securities speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2023. If Citadel Securities were to obtain a licence, it would be the first foreign firm to formally foray into market-making in China outside interbank and foreign exchange market making. "We are pleased to see the introduction of the market-making program in China," Zhao told Reuters in an interview in Hong Kong. Citadel Securities in July appointed Tony Tang, the former head of BlackRock's China business, to helm its China operations. This year, Citadel Securities also launched an investment-grade corporate bond market-making business in the United States.

Persons: Peng Zhao, Mike Blake, Zhao, Ken, Tony Tang, Summer Zhen, Selena Li, Sumeet Chatterjee, Edwina Gibbs Organizations: Citadel Securities, Milken, Global Conference, REUTERS, Reuters, Beijing Stock Exchange, Nasdaq, China's Stock, Treasuries, Asia, Thomson Locations: Beverly Hills , California, U.S, HONG KONG, China, interbank, Hong Kong, United States, Beijing, Asia

☆ Indian rupee falls to record low, next week crucial to gauge new range
▼ + stars: | 2023-11-10 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Nov 10 (Reuters) - The Indian rupee dropped to a record low against the U.S. dollar on Friday, which alongside the outage of the interbank order matching system, prompted the central bank to step in. The rupee dropped to a record low of 83.42 to the dollar and was last at 83.3925. "On why the RBI today decided that (allow rupee to drop below 83.30), it's impossible to say," a forex trader at a bank said. Next week will be very important to see if a new range has been made." He, however, said that the range in the USD/INR has now shifted higher.

Persons: Alok Sharma, Arnob Biswas, Nimesh Vora, Sonia Cheema Organizations: U.S, Reserve Bank of India, SMC Global Securities, Thomson Locations: MUMBAI, ICBC

☆ Hong Kong central bank leaves interest rate unchanged, tracking Fed move
▼ + stars: | 2023-11-02 | by ( ) www.reuters.com time to read: +1 min

A taxi drives in front of skyscrapers at the central business district, including AIA Central, China Construction Bank (CCB) Tower, Bank of China Tower, Cheung Kong Centre, HSBC and Standard Chartered Bank headquarters, in Hong Kong, China August 17, 2021. REUTERS/Tyrone Siu/File Photo Acquire Licensing RightsHONG KONG, Nov 2 (Reuters) - The Hong Kong Monetary Authority (HKMA) on Thursday left its base rate charged through the overnight discount window unchanged at 5.75%, tracking a move by the U.S. Federal Reserve to keep rates steady. The U.S. central bank held interest rates steady on Wednesday as policymakers paused its aggressive tightening of monetary policy to consider if conditions were restrictive enough to tame inflation. "The Hong Kong dollar exchange rate remains stable, and the Hong Kong dollar interbank rates might remain high for some time," HKMA said in a statement, adding that local financial and monetary markets continue to operate in a smooth and orderly manner. Hong Kong's monetary policy moves in lock-step with the United States as the city's currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.

Persons: Tyrone Siu, HKMA, Donny Kwok, Jacqueline Wong Organizations: AIA Central, China Construction Bank, Bank of China, Cheung, Cheung Kong Centre, HSBC, Standard Chartered Bank, REUTERS, Hong, Hong Kong Monetary Authority, U.S . Federal Reserve, Hong Kong, Thomson Locations: Cheung Kong, Hong Kong, China, HONG KONG, U.S, United States

☆ China rate scare reminds watchdogs of hidden risks
▼ + stars: | 2023-11-01 | by ( Chan Ka Sing | ) www.reuters.com time to read: +3 min

Overnight borrowing rates for some Chinese financial institutions spiked to 50% on Tuesday, according to official interbank data, far in excess of the average rate of roughly 3.6%. In 2012, a national audit confirmed that local governments had amassed up to 10 trillion yuan in debts. Those have since swelled to 92 trillion yuan, per Reuters. The latest liquidity squeeze is a reminder that short-term dangers will complicate any attempts at more drastic surgery on China’s financial system. CONTEXT NEWSOvernight borrowing costs for some Chinese financial institutions jumped to as high as 50% on Oct. 31.

Persons: Xi Jinping’s, Xi Jinping, Li Qiang, Peter Thal Larsen, Thomas Shum Organizations: Reuters, Traders, People’s Bank of, Financial Work, Central Financial Work Conference, Xinhua News Agency, Thomson Locations: HONG KONG, People’s Bank of China, Beijing

☆ Some Chinese institutions borrow at 50% rate as liquidity squeezed
▼ + stars: | 2023-10-31 | by ( ) www.reuters.com time to read: +2 min

The highest overnight rate for pledged repo - a short-term financing business - hit 50% on Tuesday, according to official interbank data, although the average rate remains modest at roughly 3.6%. Two-day repo rates jumped to as high as 30%, and the highest rate for seven-day repos was 12%. Several traders at small lenders were still seeking to borrow money in later afternoon trading when contacted by Reuters. The brokerage attributed the cash shortage to a "record supply" of government bonds, as well as restricted channels for banks to borrow money. The average seven-day repo rate - a widely watched indictor of short-term borrowing costs in China - remained modest at 2.0765% on Tuesday, meaning many institutions can still borrow money at relatively low rates.

Persons: Thomas White, repos, Fan, Ming Ming, Ed Osmond, Kirsten Donovan Organizations: REUTERS, Rights, Guolian Securities, Reuters, Caitong Securities, Citic Securities, Shanghai, Thomson Locations: China

☆ Exonerated Deutsche Bank trader can pursue $150 mln lawsuit -US judge
▼ + stars: | 2023-10-31 | by ( Jonathan Stempel | Companies Need To Integrate Climate Reporting Across Functions To Comply With California S New Law | Henry Engler | ) www.reuters.com time to read: +2 min

Companies Deutsche Bank AG FollowNEW YORK, Oct 31 (Reuters) - A former Deutsche Bank trader whose conviction in New York for rigging a key interest rate benchmark was overturned can pursue a $150 million lawsuit accusing the German lender of malicious prosecution for making him a scapegoat. Deutsche Bank has until Nov. 14 to formally address claims in Connolly's lawsuit. Libor probes led to about $9 billion of fines worldwide for banks, including $2.5 billion for Deutsche Bank in 2015. Black is also suing Deutsche Bank for malicious prosecution, seeking $30 million in a lawsuit filed in a New York state court in Manhattan. Black's case is Black v Deutsche Bank AG et al, New York State Supreme Court, New York County, No.

Persons: Jesse Furman, Matthew Connolly's, Connolly, Gavin Black, London interbank, Jonathan Stempel, Jonathan Oatis Organizations: Deutsche Bank, Deutsche, London, Deutsche Bank AG, Court, Southern District of, New York, Thomson Locations: New York, U.S, Manhattan, Connolly's, London, Southern District, Southern District of New York, New, Court , New York County

☆ Hong Kong property sales could surge after easing measures — but don't expect prices to pop
▼ + stars: | 2023-10-27 | by ( Vivian Kam | ) www.cnbc.com time to read: +4 min

Residential buildings in Hong Kong, China on October 23, 2023. He doesn't expect the move to reverse downward trend in Hong Kong's property prices as interest rates remain high. He expects the policy address will give property prices "a chance to stabilize" and for volumes to pick up. HIBOR refers to the interest rate for interbank borrowing, while prime rate is determined by individual banks. Risks for Hong Kong property

Persons: Vernon Yuen, John Lee, Ken Yeung, Buggle Lau, KC Mok, Mok, Kitty Yiu, Yiu, Eugene Law, Law Organizations: Getty, Hong, Midland Realty, CNBC, Hong Kong Locations: Hong Kong, China, Hong

☆ China weighs options to blunt U.S. sanctions in a Taiwan conflict
▼ + stars: | 2023-10-20 | by ( Eduardo Baptista | ) www.reuters.com time to read: +10 min

"In the context of intensified Sino-U.S. strategic competition and the Taiwan Strait conflict, we should be wary of the U.S. replicating this financial sanction model against China," wrote Chen Hongxiang, a researcher at a branch of the People's Bank of China (PBOC) in eastern Jiangsu province. Wang and several PBOC researchers wrote in articles that if the U.S. implemented Russia-style sanctions on China, Beijing should freeze U.S. investment and pension funds and seize the assets of U.S. companies. ENERGY AND ALLIANCESBesides financial sanctions, Russia's response to Western pressure on its oil, gas, metals, and chips industry has given food for thought to Chinese researchers. Chinese researchers also suggested Beijing exploit cracks within the European Union and between the U.S. and its allies. "The mutual penetration of the Chinese and American economies will inevitably weaken the willingness to impose financial sanctions," he wrote.

Persons: Thomas Peter, Chen Hongxiang, Xi Jinping, Yu Yongding, Yu, PBOC, Wang Yongli, Wang, Sun, Mou Lingzhi, Xia Fan, Ye Yan, Martin Chorzempa, Chorzempa, Chen, Eduardo Baptista, David Crawshaw Organizations: REUTERS, Rights, U.S, Moscow, China, People's Bank of China, Reuters, Senior U.S, People's Liberation Army, China National Knowledge Infrastructure, China International Futures, U.S ., China Center for International Economic, Shanghai Academy of Social Sciences, China Minmetals Corporation, London Metals Exchange, Oil and Gas Exploration, Development Company, European Union, Peterson Institute for International Economics, EU, Thomson Locations: Fuzhou, Taiwan, Matsu, China, Rights BEIJING, Russia, Ukraine, Jiangsu, Beijing, Russian, U.S, Hainan, Washington, United States

☆ The 'blue dollar' is booming: Argentina's lust for the buck pushed its black-market rate up 60,000% since peso parity ended in 2002
▼ + stars: | 2023-10-19 | by ( Anil Varma | ) www.businessinsider.com time to read: +5 min

For decades, the nation has been roiled by hyperinflation, sky-high interest rates, a growing mountain of debt, a string of sovereign defaults, and a cratering exchange rate. Rampant inflation has ravaged Argentina's currency over the years, wiping out much of its value against the dollar and ruining its appeal to consumers. The coveted bucks from the back alleys of Buenos Aires have their own price, even their own name: dólar blue, or the "blue dollar." AdvertisementAdvertisementUp 60,000% and going strongThe dollar's unofficial exchange rate smashed above 1,000 pesos for the first time last week, to hit levels almost three times as high as the official rate. That would almost certainly mean the blue dollar surging to new highs.

Persons: —, It's, Javier Milei, Manuel Cortina Organizations: Service, Spain's Santander Group, Cato Institute, Local, Argentine, Monetary Fund, BBVA Locations: Argentina, Buenos Aires, bluedollar.net, American, Brazil, Argentine, Spanish

☆ India cenbank's $5 billion USD/INR swap expiry fuels dollar shortage concern
▼ + stars: | 2023-10-16 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

A man walks behind the Reserve Bank of India (RBI) logo inside its headquarters in Mumbai, India, April 8, 2022. The Reserve Bank of India (RBI) had conducted a $5 billion sell/buy dollar/rupee swap last year. In a buy/sell swap, a bank buys dollars on the spot date and sells them at a later date. Meanwhile, the dollar/rupee cash swap rate fell on Monday, suggesting the banking system is already facing a dollar crunch. The USD/INR cash/tomorrow swap rate was at 0.15 paisa, implying a rupee interest rate of about 6%.

Persons: Francis Mascarenhas, Nimesh Vora, Mrigank Organizations: Reserve Bank of India, REUTERS, Rights, Thomson Locations: Mumbai, India, Rights MUMBAI

☆ India's state-run banks to lower bond purchases as liquidity tightens - treasurers
▼ + stars: | 2023-10-13 | by ( Dharamraj Dhutia | ) www.reuters.com time to read: +2 min

MUMBAI (Reuters) - India’s state-owned banks will slow government bond purchases in the weeks ahead as banking system liquidity tightens, treasury officials from nine state lenders said. REUTERS/Hemanshi KamaniBond yields have spiked since Oct. 6, when the central bank said it will keep monetary policy restrictive and sell bonds to manage banking system liquidity. These lenders have bought 253 billion rupees ($3 billion) of government debt since Sept. 22, including 100 billion rupees on Oct. 6. Banking system liquidity - the quantum of funds in the interbank market - has largely been in deficit from the middle of September. Bond traders expect the banking system’s cash position to stay in deficit because of tax payments and likely bond sales by the Reserve Bank of India (RBI).

Persons: “, ” Vijay Sharma, PNB Gilts, Bond Organizations: REUTERS, Banking, Reserve Bank of India, “ Locations: MUMBAI, ”, India

☆ India's state-run banks to lower bond purchases as liquidity tightens, treasurers say
▼ + stars: | 2023-10-13 | by ( Dharamraj Dhutia | ) www.reuters.com time to read: +2 min

MUMBAI, Oct 13 (Reuters) - India's state-owned banks will slow government bond purchases in the weeks ahead as banking system liquidity tightens, treasury officials from nine state lenders said. Bond yields have spiked since Oct. 6, when the central bank said it will keep monetary policy restrictive and sell bonds to manage banking system liquidity. These lenders have bought 253 billion rupees ($3 billion) of government debt since Sept. 22, including 100 billion rupees on Oct. 6. Reuters GraphicsBanking system liquidity - the quantum of funds in the interbank market - has largely been in deficit from the middle of September. Bond purchases would be incremental and linked to rise in yields, say at every 3-4 basis points, the treasury head at the state-run bank said.

Persons: Vijay Sharma, PNB Gilts, Dharamraj Dhutia, Swati Bhat, Mrigank Organizations: Reuters Graphics Banking, Reserve Bank of India, Thomson Locations: MUMBAI, India

Trillions of euros of financial products, from mortgages to car loans, remain pegged to the Euro Interbank Offered Rate as Euribor is officially known. The move to revamp Euribor aims to reduce the burden on institutions that do provide input by using a standardised approach. Having the broadest possible geographical spread of banks in Euribor's panel is seen as the best way to have a full picture of euro-denominated lending costs. Schirmann highlighted that countries with active bank-to-bank lending markets such as Finland, Ireland and Greece currently had no banks on Euribor's panel. Cutting the need for banks to provide bespoke so called "Level 3" estimates should also "significantly diminish" the time and costs involved for banks.

Persons: Dado Ruvic, Libor, Jean, Louis Schirmann, Schirmann, EMMI, Marc Jones, Mark Potter Organizations: REUTERS, Federal Reserve, European Central Bank, Bank of England, Money Markets, Reuters, Deutsche Bank, Thomson Locations: Euribor's Brussels, Euribor's, Finland, Ireland, Greece

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