Bond Market

Seeking to shore up the rupee ‌and interest in bonds, India last week announced ​tax cuts for overseas bond investors ​and a host of measures aimed at boosting inflows and improving market access

RBI and government measures to attract foreign capital have improved sentiment in the bond market, but most fund managers continue to favour shorter-duration papers

Bloomberg's review of its flagship global index is scheduled for mid-June this year

Tax breaks and RBI measures may attract foreign funds and support the rupee, but lasting currency strength depends on exports, FDI and competitiveness

The state-run power company attracted bids worth Rs 8,700 crore for its 15-year bond issue amid strong demand for top-rated long-duration debt instruments

Strategists warn long-term bond yields may remain elevated even if war-driven inflation eases, citing debt burdens, AI spending and higher rate expectations

Since the start of the West Asia crisis, 10Y sovereign yields have risen by more than 50 bps across several advanced and emerging markets, including Japan, UK, US, Canada, Italy, Spain and South Korea

The move underscores the RBI's push to deepen liquidity in sovereign debt, a priority that Governor Sanjay Malhotra highlighted this month

PNB Gilts shares surged nearly 20% after reports suggested India may reduce taxes on bond investments by foreign investors to attract capital and support the rupee

RBI said the switch operation will help the government spread redemption liabilities and reduce rollover risks by replacing short-term securities with longer-tenor bonds

State-owned infrastructure financier successfully taps long-term bond market despite volatility, investor caution and uncertainty linked to the West Asia crisis

Reserve Bank of India keeps bond structure intact but tightens rules with digital access, investor safeguards and stricter compliance norms

Developing a deep corporate bond market requires the political will to relinquish control over credit, not technical fixes

NABARD and REC withdraw planned bond issuances worth Rs 11,000 crore after receiving limited bids at higher yields, reflecting cautious sentiment in the debt market

Prolonged geopolitical tensions could pose headwinds

To facilitate retail participation in G-Secs, RBI came out in November 2021 with a scheme for direct retail participation in G-Secs through its own depository system and the NDS-OM trading platform

Last June, ​the company raised an aggregate of 50 billion rupees through a ‌combination of two-year papers, 30-month bonds and three-year bonds

Fourteen states raised ₹47,620 crore at weekly SDL auctions as yields softened marginally and spreads over gilts stayed stable

The RBI's MPC unanimously kept the repo rate unchanged at 5.25 per cent, retaining a neutral stance while signalling that future policy decisions will be guided by data from new GDP and CPI series

India's fiscal discipline has improved, but high debt, future spending pressures and bond-market constraints make deeper consolidation increasingly difficult