Page 10 - Bond Market

RBI raises guardrails ahead of global index inflows, may sell bonds

The inflows will add to the RBI's challenge of keeping liquidity on a leash even as it may need to buy dollars to prevent a sharp appreciation in the rupee

Global bond selloff upends markets as long term borrowing costs surge

Traders are bracing for an extended period of tight monetary policy, and demanding ever higher compensation to hold long-dated government debt

New quarter, same struggles for stocks, bonds and currency markets

A opening move higher from the pan-European STOXX 600 quickly gave way in the face of some weak PMI data, denting traders' hopes for its first three-session run of back-to-back gains

BNP Paribas upbeat on India bonds on JPMorgan inclusion, sees $20 bn inflow

The benchmark 7.18% 2033 bond yield was trading at 7.23% on Thursday, after hitting a two-month low of 7.07% last Friday in the immediate reaction to the inclusion news

UBS Group takes lead in $50 billion bond market left by Credit Suisse

The biggest winner in this market from the March demise of Credit Suisse - the leading arranger of Swiss franc bonds for most of the last 20 years

Government bond and forex market to remain open on Thursday, Friday

The auction of government-dated securities scheduled on Friday, will now be conducted on Thursday, with settlement on Friday

Goldman Sachs splits with regulators on risk that basis trade poses

The cash-futures basis trade by some measures is as big as it was in 2019 and early 2020, when the onset of the pandemic sparked a rush for the exits that required a bailout by the Fed

JPMorgan adding Indian bonds will see public finances scrutinised

Foreign exchange reserves, which are higher than last year, and the credibility of the regulators will work in favor of the South Asian country, CIO SBI Funds said

Govt considers financial creditor status for insurers issuing surety bond

To make surety bond business more attractive, the government is looking at making relevant changes in the Insolvency and Bankruptcy Code (IBC) to consider insurers as financial creditor in case of default of infra projects. The surety bond issued by a general insurance company is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee). The surety is a company that provides the financial guarantee to the obligee (usually a government entity) that the principal (business owner) will fulfil their obligations. According to sources, the Ministry of Corporate Affairs is looking into concerns raised by the insurers that they should have recourse to recovery on par with the banks as forwarded by the Department of Financial Services under the finance ministry. The department is examining the issue and after careful examination, relevant changes would be made in IBC to provide financial

JP Morgan boost: PNB Gilts zooms 20%, hits 52-week high on heavy volumes

A combined 27.85 million shares, representing nearly 60 per cent of free-float equity of PNB Gilts, have so far changed hands on the NSE and BSE

Sebi removes penalties on cos unable to meet mandatory bond mkt borrowing

The regulator said it would grant more flexibility to large companies for incremental borrowing via bonds

Take advantage of surety bonds: Irdai Chairman to infra stakeholders

Irdai Chairman Debasish Panda on Tuesday urged stakeholders in the infrastructure sector to take advantage offered by surety bonds, which complement bank guarantees needed for large scale funding. Surety bond is a type of insurance policy protecting parties involved in a transaction or contract from potential financial losses due to a breach of contract or other types of non-performance. He was speaking at a roundtable organised by Confederation of Indian Industry (CII) and The Infravision Foundation (TIF) on the financing of infrastructure projects in the country as part of the massive push to the sector by the government by allocating Rs 10 lakh crore towards it in the Union Budget 2022-23. The chairman of Insurance Regulatory and Development Authority of India (Irdai) pointed out that India is expected to spend approx Rs 100 lakh crore on infrastructure through the National Infrastructure Pipeline in the next five years. This requires bank guarantees of approximately Rs 90 lakh

Benchmark 10-year yields approach August highs as oil prices gain

Oil prices increased on Tuesday for a fourth consecutive session, raising fears that higher commodity prices will keep price pressures elevated

SGB issue price fixed at Rs 5,923 per gram, subscription to open on Sept 11

The Reserve Bank of India (RBI) on Friday said the issue price for the next tranche of Sovereign Gold Bond has been fixed at Rs 5,923 per gram and will open for subscription from September 11. "The nominal value of the bond based on the simple average of closing price (for gold of 999 purity)... works out to Rs 5,923 per gram of gold," it said, while announcing the issue price of Sovereign Gold Bond Scheme 2023-24 Series II (second tranche). The government, in consultation with the RBI, has decided to offer a discount of Rs 50 per gram less than the nominal value to investors applying online and making the payment against the application through digital mode. For such investors, the issue price of gold bond will be Rs 5,873 per gram, it said. The issue will be open from September 11-15, according to the statement. The bonds will be sold through banks, Stock Holding Corporation of India Ltd (SHCIL), designated post offices, and recognised stock exchanges -- the NSE and the BSE. Th

US treasury 10-year real yield exceeds 2% for first time since 2009

Benchmark rose as much as 6 basis points to 2%, before easing little under that threshold, extending rise from 1.5% since mid-July. 30-year real yield up 6.6 basis points to 2.14%, new peak since 2011

Bond market sees no end to tumult as Federal Reserve casts a hawkish shadow

That uncertainty, along with an increase in new debt sales as the federal government contends with mounting deficits, has weighed on the bond market

How dizzying bond moves put 4% yield in play to win over investors

Yields for most tenors approached the highest levels seen so far this year, while wagers that the US Federal Reserve (Fed) might cut interest rates this year fizzled

IIFL Finance keen to raise more funds through bond market, says CFO

As on March 31, the company's total borrowing stood at nearly 40 billion rupees ($485.07 million). Its borrowing mix currently comprises 60% from banks, 20% from the bond market

Irdai relaxes norms for surety bonds to expand market for such products

Regulator Irdai on Tuesday said it has relaxed norms for 'surety bonds', a type of insurance policy protecting parties involved in a transaction or contract from potential financial losses due to a breach of contract or other types of non-performance. The changes are aimed at expanding the surety insurance market by increasing the availability of such products. As per a circular issued by the Insurance Regulatory and Development Authority of India (Irdai), the solvency requirement applicable for such products has now been reduced to control the level of 1.5 times from 1.875 times previously prescribed. Further, the prevailing 30 per cent exposure limit applicable on each contract underwritten by an insurer, has also been removed. The regulator had issued 'IRDAI (Surety Insurance Contracts) Guidelines' in January 2022. Irdai said the amendments have been made on the basis of the evaluation of various representations received. The amendments follow the earlier notification removing

Monetary policy: Bond yields soften after RBI hits pause on rate hike

The 10 year g-sec yield is expected to be at 7.0 per cent as against 7.21 per cent currently by end March 2024