Government Bonds

As India opens its bond market further, investors are weighing its strengths against higher-yielding rivals such as Brazil, Mexico, and South Africa

Govt has completely eliminated capital gains tax and withholding tax on interest income for FPIs investing in GSec, and has expanded specified securities under FAR

The government's tax exemption for foreign investors has put India's bond market in the spotlight. Here's a breakdown of the key terms investors need to know

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

RBI's foreign flow measures help Indian currency appreciate to 94.94 against dollar

Overseas investors overall bought bonds worth ₹22,100 crore in January-February, while in March, they sold a record ₹17,700 crore, before turning buyers in April-May

Rupee depreciated for second consecutive trading session post US President Trump's tariff proposes

The benchmark 10-year yield is up about 34 basis points to 7 per cent since the outbreak of the Iran war three months ago

Bond yields show the return investors demand for lending money. When yields rise, borrowing becomes costlier for governments, companies and consumers across the economy

Government bond yields climbed as crude oil and US Treasury yields rose, while improved liquidity conditions pushed overnight rates below the policy repo rate

Government bond yields are expected to remain elevated, with the benchmark 10-year yield likely to test 7.25 per cent amid oil price pressures and heavy supply

Foreign investors turn net sellers of FAR securities in March as global risks, rising oil prices, and higher US yields weaken sentiment, though RBI measures keep bond yields stable

Mutual funds have net sold government bonds worth 356 billion rupees ($3.82 billion) so far this month, a record for any month, clearing house data showed

RBI will purchase Rs 50,000 crore of government bonds through an open market operation auction on Friday as part of its liquidity infusion measures

The rupee strengthened and bond yields eased as crude oil prices fell sharply from recent highs, improving market sentiment and boosting demand for government securities

The rupee slipped amid muted global risk appetite and firm US yields, though RBI intervention helped cap losses, while forex reserves hit a new record of $725.7 billion

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

Despite easing after the policy review, government bond yields are expected to stay elevated in Q4 as supply pressure persists, debt switches offer limited relief and liquidity support appears unlikel

The net borrowing will rise to ₹11.73 trillion next fiscal ​from ₹11.33 trillion for the current fiscal, according to the budget. India's fiscal year runs April through March

The Centre's higher gross borrowing won't be a challenge in FY27, but the increasing size of state development loans is a concern