Page 7 - Bonds Market
Sovereign gold bonds sales fetch Rs 25,702 crore till March end
A total of Rs 25,702 crore has been raised through the Sovereign Gold Bond (SGB) Scheme since its inception till end-March, according to the RBI annual report released on Thursday. The scheme was launched in November 2015 with an objective to reduce the demand for physical gold and shift a part of the domestic savings -- used for the purchase of gold -- into financial savings. In 2020-21, RBI issued twelve tranches of bonds for an aggregate amount of Rs 16,049 crore (32.35 tonnes). "A total of Rs 25,702 crore (63.32 tonnes) has been raised through the scheme since its inception in November 2015," the annual report said. In the current fiscal, the government has decided to issue the bonds in six tranches from May 2021 to September 2021. The Reserve Bank of India (RBI) issues the bonds on behalf of the Union government. The subscription for the second tranche of scheme ends on Friday. The third tranche or 2021-22 Series III will open for subscription from May 31 June 4. The first
 "Sovereign gold bonds sales fetch Rs 25,702 crore till March end")
State Bank of India board to consider raising $2 billion through bonds
SBI is the country's largest lender
 "State Bank of India board to consider raising $2 billion through bonds")
State-owned power giant NTPC to raise Rs 3,996 cr via bonds next week
The firm will issue non-convertible bonds on Tuesday
 "State-owned power giant NTPC to raise Rs 3,996 cr via bonds next week")
Regulator Sebi slaps Rs 25 crore fine on YES Bank in AT-1 bonds case
The fine relates to the matter of misselling the lender's AT-1 bonds few years ago
 "Regulator Sebi slaps Rs 25 crore fine on YES Bank in AT-1 bonds case")
Chris Wood trims India exposure as Covid cases rise
Earlier in December 2020, he raised exposure to Indian equities twice in this and reiterated his bullish on cyclical sectors as economic indicators showed improvement
 "Chris Wood trims India exposure as Covid cases rise")
Additional tier-1 bond stand-off likely to spook corporate bond yields
Besides redemption pressure in debt market, it will make fund raising difficult for PSBs
 "Additional tier-1 bond stand-off likely to spook corporate bond yields")
Low premiums on parts of Indian credit prompt calls for RBI help
Spreads on five- and 10-yr rupee corporate bonds diverging
 "Low premiums on parts of Indian credit prompt calls for RBI help")
Indiabulls Housing Finance raises Rs 1,091 cr via foreign currency bonds
The firm issued foreign currency convertible bonds
 "Indiabulls Housing Finance raises Rs 1,091 cr via foreign currency bonds")
Wildest yield gap since 2001 boosts allure of bonds, shows data
The ratio between the nation's benchmark 10-year yield and the BSE Sensex index's current earnings yield is now at the highest level since 2001, dimming the appeal of equities
 "Wildest yield gap since 2001 boosts allure of bonds, shows data")
Sensex, Nifty rebound as yield pressure eases; ONGC, UltraTech gain
The progress in the US stimulus package and gross domestic product (GDP) growth in India for the quarter ended December 31, after two consecutive quarters of contraction, also helped sentiment
 "Sensex, Nifty rebound as yield pressure eases; ONGC, UltraTech gain")
Best of BS Opinion: Rising bond yields, 'Aatmanirbhar Bharat', and more
Here's a selection of Business Standard opinion pieces for the day
 "Best of BS Opinion: Rising bond yields, 'Aatmanirbhar Bharat', and more")
Statsguru: Bond market pressure is getting reflected in the stock market
Bond markets are showing signs of nervousness, and yields on the 10-year government bonds are on the rise
How RBI should 'manage' the yield curve
None can question the central bank's policy of leaning against the rising yield but the problem is with the way it is being done
 "How RBI should 'manage' the yield curve")
Unifying bond markets will allow use of common infra: Sebi's Ajay Tyagi
"Unification of government bond and corporate bond markets is an idea whose time has come," Tyagi said while speaking at CRISIL's 6th bond market seminar
 "Unifying bond markets will allow use of common infra: Sebi's Ajay Tyagi")
With high interest rates likely, investors need to avoid long-term funds
Shorter-duration funds will benefit from being able to reinvest at regular intervals
 "With high interest rates likely, investors need to avoid long-term funds")
Explained: Why is a rise in bond yields a concern for everyone?
A rise in sovereign bond yields means a rise in the interest rate in the economy
Message from market
RBI must be mindful of inflation risks of higher borrowing
Would industry still hail a budget without tax sops if cost of money rises?
Higher interest rates will clip investment plans of companies and could bad news for FM Nirmala Sitharaman who feels she has kept her part of the deal in Budget FY22 by not raising taxes
 "Would industry still hail a budget without tax sops if cost of money rises?")
RBI to buy bonds worth Rs 20,000 crore via open market operations on Feb 10
The central bank on Friday devolved nearly the entire bond auction on primary dealers, as the markets were demanding higher yields for five-year and 10-year bonds being sold
 "RBI to buy bonds worth Rs 20,000 crore via open market operations on Feb 10")
Vedanta Resources sells bonds worth $1 bn at one of highest yields in Asia
The company priced the January 2024 bond on Wednesday at a yield of 13.875%
 "Vedanta Resources sells bonds worth $1 bn at one of highest yields in Asia")