Government Securities

Sebi's income rises 31 per cent to Rs 2,713 crore in FY25, while CAG flags internal control issues including unreconciled balances and discrepancies in lease deposits and asset records

The government has bought back G-secs worth Rs 6,309 crore from the switch auction conducted by the Reserve Bank of India (RBI), and has issued bonds worth Rs 6,431.797 crore, according to a release. Government securities (G-Secs) are low-risk debt instruments that are issued by the government and offer fixed returns and are backed by a sovereign guarantee. The securities repurchased by the government were part of the scheduled bonds set to mature in the next financial year. These included Rs 1,684 crore of 7.33 per cent GS 2026, Rs 1,035 crore of 5.74 per cent GS 2026, Rs 590 crore of 8.15 per cent GS 2026, and Rs 3,000 crore of 8.24 per cent GS 2027, the release said. In exchange, the government issued Rs 1,719.236 crore of 6.57 per cent GS 2033, Rs 986.526 crore of 7.62 per cent GS 2039, Rs 605.609 crore of 6.57 per cent GS 2033, and Rs 3,120.426 crore of 7.40 per cent GS 2062, the release added. This is the fourth switch auction by the RBI since February. In a bond switch, th

The government will conduct a ₹25,000-crore switch auction on Monday to convert bonds maturing in 2026-27 into longer-tenor securities, helping smoothen its redemption profile and reduce rollover risk

Banks are likely to invest around Rs 7 trillion in G-secs in FY27 as deposit growth strengthens and SLR requirements rise, with RBI expected to use OMOs to manage liquidity, analysts said

States and Union territories plan to borrow up to Rs 4.99 trillion through state development loans in the fourth quarter, with heavy supply expected to keep bond yields under pressure

RBI rejected bids for the 7.18 per cent 2037 security as quoted prices were above market levels, but purchased ₹50,000 crore of gilts in line with the notified amount

Market participants said that sentiment in the domestic debt market improved due to the US Federal Reserve's policy rate cuts, and growing expectations of a trade deal between the two countries

Forex clearing transactions rose from 16.6 lakh transactions worth Rs 466 trillion in 2020 to 26.3 lakh transactions amounting to Rs 885 trillion in 2024

Bond market participants said that the borrowing amount for both state government securities and T-bills was tad lower than the expected

While the RBI's overall policy intent is clearly growth supportive, the shift to neutral stance has been a communication challenge, Radhakrishnan said

The Reserve Bank of India (RBI) maintained the existing caps of 6 per cent for government securities, 2 per cent for state government securities and 15 per cent for corporate bonds

Currently, membership open to entities such as banks, primary dealers, insurers, MFs

Bond market participants said that in bond forwards, there will be actual delivery of bonds

The government's prudent fiscal management may soften government securities yields and leave more funds for corporates to invest in the economy, DEA Secretary Ajay Seth has said. In absolute terms, he said, "we will be borrowing (for FY26) less than what we intend to borrow in the current year. Even the gross borrowings are also marginally more than what it was, signalling that the government will leave enough into the market for the private sector to pick up". The government has reduced its borrowings estimate for next financial year to Rs 11.54 lakh crore on net basis as it expects an improvement in tax collection. However, gross market borrowings have now been revised upward to Rs 14.82 lakh crore from Rs 14.01 lakh crore estimated for the current financial year. The government has to borrow by issuing dated securities to meet its fiscal deficit target. "So, I see that the fiscal consolidation this year and fiscal consolidation road map next year should rather soften the ...

NAV represents the market value of an investor's mutual fund holdings and is a key metric for understanding the worth of their investments

In 2023-24, states contained their GFD at 2.9 per cent of GDP, within the Fiscal Responsibility Legislation (FRL) limit of 3 per cent

Take limited exposure to longer-duration debt funds; match horizon with fund's portfolio duration

Stock brokers may be allowed in the RBI-operated NDS-OM system for government securities

Along with OMO sales, the RBI has also been conducting VRRR auctions in order to drain excess liquidity

Dimple Bhandia highlighted that the credit derivatives market has been another area that has struggled to take off