Bond Markets

Negatives largely priced in but outlook remains uncertain, say experts

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

Nabard withdrew its planned Rs 7,000-crore bond reissuance after weak investor response and demands for higher yields amid volatile market conditions

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

Move aims to widen retail participation in bond investments

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

CCIL's proposed platform aims to shift OTC bond forward trades to central clearing, enhancing transparency, risk management, and participation in a Rs 4 trillion market

State borrowing exceeds calendar estimate at weekly auction, with five states raising Rs 16,900 crore and SDL yields set at 7.64 per cent

The 10-year benchmark yield rose as much 4 basis points to 7 per cent after the Reserve Bank of India announced plans to withdraw liquidity of up to ₹2 trillion ($21.6 billion)

Corporate bond issuances likely to remain subdued in FY27 as elevated yields, inflation risks and liquidity conditions weigh on fundraising activity and investor appetite

RBI MPC member Saugata Bhattacharya flags rising inflation risks but sees no overheating, says lower final US tariffs could lift exports and foreign capital inflows into India

Even as bond yields eased after the policy review, supply pressure and limited relief from switches mean the 10-year yield is expected to stay firm through Q4, with cuts or liquidity support unlikely

The RBI MPC, led by governor Sanjay Malhotra, on Friday, announced to keep the repo rate unchanged at 5.25 per cent

Union Budget 2026 avoids tax shocks, stays committed to fiscal discipline and capex-led growth, with long-term implications for equities, bonds, and fixed income investors, writes Basant Bafna

For India to finance sustained growth, it must strengthen long-term capital markets as bond market currently is shallow, illiquid

Sebi and RBI are working to introduce bond derivatives to deepen liquidity as the regulator pushes reforms to boost retail participation and strengthen India's bond market

States had borrowed Rs 5 trillion through state bonds in the first half of FY26, with Q2 issuances marginally exceeding the indicative borrowing calendar, the first such instance in seven quarters

The selling comes as the rupee tested a series of record lows against the dollar this month, eroding returns for foreigners

Gross borrowings by Indian states have jumped almost 20 per cent this fiscal year from 2024 as growth in tax revenues slowed, while they beefed up spending