Page 22 - Bond Market

A sit it out strategy

A long-term investor has to be ready to weather any storm

Why an inflation dip may not be good news for India's bond traders

India's benchmark 10-year sovereign bonds have slumped in six of the last eight months

Better-rated companies borrow heavily from India's bond market

Bond market investors are willing to give money to companies rated AA and above, according to the criterion in the Sebi consultation paper

Bearish bond market signals

So far, Indian equity investors have ignored this. But there could be some impact with a lag

India's fiscal trilemma may create a fragile bond-market equilibrium

A reduction in financial repression, without a commensurate reduction in the fiscal deficit, and a wariness to open foreigner limits more aggressively create a fragile bond-market equilibrium

A temporary reprieve: Bond market cheer may fade due to underlying problems

Yields on the benchmark 10-year security dropped by 29 basis points on Tuesday, among the biggest such slides

Uncertain times in bond market casting shadow on economy

Yields on the 10-year bond rose about 70 basis points in the December quarter, causing nominal losses of at least Rs 150 billion to banks

Bond market braces for extra borrowing

The target is 3.2 per cent of gross domestic product and doesn't look achievable - the government is undershooting its revenue and tax targets

Bond market rally may continue for a few more months

The Reserve Bank of India's (RBI's) dovish language on inflation and a clear indication of a willingness to cut rates further, if inflation remain tamed, have swung the bond market into action.Bond yields have been rallying since the policy announcement on Wednesday and the market expects yields to drop further, albeit after intermittent corrections.The yield on the 10-year gilt closed at 6.5 per cent on Friday, about 14 basis points down from the pre-policy level. The bond market is now divided over whether a rate cut would come in the August policy or later. But, the cloud of uncertainty over a rate cut is largely removed. Earlier the market was expecting no rate cut this calendar year and some were expecting the present rate cycle to have reached its lowest and would reverse from the middle of calendar year 2018.But after the central bank lowered its inflation expectation sharply in the June policy, the market is now expecting a rate cut or two this calendar year.The central bank ..

Bond market doesn't expect surprises

Ballooning of states' debt paper a growing concern, including effect on corporate sector

Bond market expects govt to allow huge tax-free bond issuances

It expects the Centre to allow public sector undertakings to raise huge amount of tax-free bonds

New 10-year bond issue may be about 7%

The govt said it would issue a new 10-year benchmark on Friday, as the existing one - with a coupon of 7.59% - has nearly exhausted its perceived limit, after raising Rs 87,000 cr through the instrument