Page 16 - Bonds

10-year govt bond yield could drop to 6.75% later in 2024: ICICI Bank

"We feel that beyond the middle of this calendar year, by the July-September quarter, we could see the benchmark bond yield touching at least 6.75% if not lower," said B. Prasanna

10-year bond yield declines below 4% as investors await US Fed

The Federal Reserve two-day policy meeting will conclude this afternoon. Markets have priced in a near-certainty that the central bank will leave benchmark interest rates in their current range

Steady benchmark bond yields eye Budget, US Fed cues for direction

India's benchmark 10-year yield ended at 7.1735%, on Monday, following its previous close at 7.1760%

Adani Green completes funding of reserves for $750 million Holdco Bond

Adani Green had announced the redemption plan for the $750 million bonds earlier this month

BoB raises Rs 5,000 cr via infra bonds; completes Rs 10,000 cr target

The coupon was fixed at 7.57 per cent for the 10-year paper. Bond market sources said the initial guidance for the coupon was 7.63-7.64 per cent

SBI Card raises Rs 525 crore via issuance of non-convertible debentures

SBI Card on Wednesday said it has raised up to Rs 525 crore by issuing non-convertible debentures to fund its business growth. It will allot 525 fixed rate, unsecured, rated, taxable, redeemable, subordinate tier II, listed, non-convertible debentures aggregating to Rs 525 crore on a private placement basis, according to a regulatory filing. They will have a face value of Rs 1 crore each and carry a coupon rate of 8.33 per cent, it said.

Benchmark 10-yr bond yields steady at 7.1% as traders await fresh cues

India's benchmark 10-year yield ended at 7.1751%, following its previous close at 7.1790%. India's bond markets were shut on Monday and will be closed on Friday

Foreign banks lap up government bonds ahead of India's index inclusion

Foreign investors pumped in Rs 14,281 crore in domestic debt market in January

China weighs more stimulus with $139 billion of special sovereign bonds

The proposal under discussion by senior policymakers would involve the sale of ultra-long sovereign bonds to fund projects related to food, energy, supply chains and urbanization

State govt's borrowing cost begins to ease, declines by 7 bps to 7.65%

Lower supplies for the second consecutive week finally led to the coupons on state debt to fall from the two-year high at the latest auction held on Tuesday, and the weighted average cut-off eased by 7 bps to 7.65 per cent. For the past two weeks, despite poor supplies states were forced to offer very high returns, which had touched 7.72 per cent last week, the highest in the past two years. Nine states raised Rs 19,200 crore by selling state government securities on Tuesday, 32 per cent lower than the amount indicated for this week in the auction calendar. Following this and the dip in the core-CPI inflation, the weighted average cut-off dipped to 7.65 per cent from a high 7.72 per cent last week, despite the weighted average tenor increasing to 16 years from 11, Icra Ratings chief economist Aditi Nayar said in a note. Moreover, she said the spread between the cut-off of the 10-year state bonds and the 10-year benchmark G-sec yield declined to 50 bps from 54 bps last week. So far

Shriram Finance to issue over 3 yr dollar denominated bonds: Bankers

The funds will be used to support social projects and other activities allowed under the Reserve Bank of India's external commercial borrowing guidelines, a term sheet showed

Bank of Baroda to raise up to Rs 5,000 cr via infra bonds in Jan: Bankers

The state-run bank is likely to invite bids from bankers and investors for the proposed issue this month, they said

Fund mobilisation through private bond placements hit all-time high in 2023

The highest mobilisation in 2023 came from All-India Financial Institutions and banks, accounting for Rs 4.71 trillion, representing a 29 per cent increase from the previous year's Rs 3.66 trillion

Sovereign gold bonds shine in FY24 as high returns attract investors

The reason for the good response in FY21 and FY22 was because of the lockdown and as the jewellery stores were not open while SGB buying was possible through net banking

SMFG India Credit raises Rs 600 crore via maiden rupee debt issuance

Japan's Sumitomo Mitsui Banking Corporation has raised Rs 600 crore through its maiden rupee-denominated perpetual debt issuance and the money will be infused into the group entity SMFG India Credit Co. The amount mopped up through the external commercial borrowing route would help to bolster the tier-I capital base of SMFG India Credit Co, formerly known as Fullerton India Credit, according to a statement on Wednesday. Pankaj Malik, the chief financial officer of SMFG India, said with capital infusion, the company's capital adequacy ratio improved 160 bps. Since these bonds are perpetual, the issuance also strengthens asset liability profile. Though perpetual bonds means debt issued with no maturity dates, in practice perpetual debt has a tenor of 100 years, or marginally less. The only other issuer from the lending space that has issued perpetual debt in the country is State Bank of India and among other corporate, it is only Reliance Industries. Sumitomo Mitsui Financial Group

States continue to pay high coupon on debt at over two-year high of 7.72%

The weighted average rates of state debt continued to remain at an over two-year high of 7.72 per cent at the second weekly auction of the quarter on Tuesday, making it the highest so far this fiscal. Accordingly, the spread between 10-year state bonds and benchmark G-sec yield also remained firm at 54 bps, with both inching up by 1 bps from the previous week, according to a note by Icra Ratings' chief economist Aditi Nayar. Nine states raised Rs 19,300 crore from the market selling government securities, which was 34 per cent lower than the amount indicated for this week in the auction calendar. Despite lower supply, the weighted average cut-off inched up to 7.72 per cent, which is the highest so far in FY24 from 7.71 per cent last week. The payout increased in spite of the weighted average tenor remaining unchanged at 11 years. Both this had the spread between the cut-off of the 10-year state bonds and the 10-year benchmark G-sec yield inching up to 54 bps from 53 bps last week,

Indian bonds may be included in Bloomberg EM index from September

The proposal comes just a few months after JPMorgan said it would include India in its widely tracked emerging market debt index from June

Adani Green announces redemption plan for $750 million bond due in Sept

The company has debts worth Rs 22,942 crore, up for repayment and refinancing

Adani Ports' first bond issue in over 2 yrs lapped up, more coming: Bankers

The fundraising follows the Supreme Court's decision that the group is not required to undergo additional investigations beyond the market regulator's current scrutiny

Vedanta Resources' bondholders back company's debt restructuring plan

"The overwhelming consent to the revised terms will take immediate pressure (off) Vedanta to repay the debt obligation," Vedanta Resources said