Foreign investors have piled on bonds this year and remained on the buying side on Tuesday, despite the unexpected election outcome hitting stocks
The latest halt in the global risk rally has come on the back of data pointing to lingering inflationary pressures across major economies
The market regulator said that while onboarding, clients were not given preference to select segments, due to which the client was required to open a trading account in all segments
Sovereign bonds have already rallied in recent weeks, boosted by a reduction in short-term borrowings
Liquidity is expected to improve significantly after the RBI's record surplus transfer to the government
The gains will be capped as the central bank's record surplus transfer to the government has boosted market sentiment
The government has bought back securities aggregating to only around Rs 17,900 crore ($2.15 billion), against notified quantum of Rs 1.60 trillion in May
Traders were also cautious after the 10-year US yield moved off its recent lows, but continued to remain around the 4.35 per cent mark.
The bid-to-cover ratio for the first tranche of the special bonds was 3.91 times, suggesting solid demand for such bonds
The central bank said it would buy back Rs 60,000 crore worth of securities, maturing this financial year, on May 21
Inflation accelerated in the first quarter on strong domestic demand after moderating for much of last year
The US Treasury yields slipped on Thursday ahead of inflation reports that are pivotal for the Federal Reserve's higher-for-longer rate strategy
The Government of India is issuing a special type of bond called a Floating Rate Bond (FRB) that matures in 2034.
India's corporate bond market has witnessed a phenomenal year, recording an all-time high of Rs 9,97,804 crore (approximately $1.2 trillion) mobilized through private placements in fiscal 2024.
Hindenburg levied accusations of fraud and stock manipulation in a report in early 2023
Under the new norms, banks must categorise bonds as "held-to-maturity" on a permanent basis, with the exception of 5 per cent of the portfolio that can be withdrawn throughout the year
Since then, most of the group's foreign bonds are back above the levels they traded at before the Hindenburg report, giving the company comfort to look at a fresh issue of dollar bonds
For bulls who powered the massive rally, the tactical trade at the moment is to move into the bonds, whose appeal has been further burnished by the nation's improving finances
The original 'Fragile Five' which also included Turkey, South Africa and Brazil referred to nations perceived to be most at risk due to their heavy reliance on foreign investment to drive growth
Recent bond auctions saw bids that surpassed expectations, said Alok Singh, group treasury head at CSB Bank