India inclusion in JP Morgan Bond Index: The inclusion process will begin on June 28, 2024 and will be completed over a period of 10 months, till March 2025
Inflows into bonds under the fully accessible route, which will be included in JPMorgan's widely-tracked emerging market debt index on June 28, have risen to more than $10 billion
Indian government securities have seen inflows of $10.4 billion since the index inclusion announcement in September 2023
India's inclusion in global bond indices was discussed for nearly a decade before the inclusion in the widely tracked JP Morgan index was finally announced last September
Bond yields shot up on Tuesday and have largely remained elevated after a weakened mandate for Prime Minister Narendra Modi's party
The yield saw its biggest single-session climb since Oct. 6 on Tuesday
The government's fiscal position is expected to strengthen after a better-than-estimated dividend transfer and could further reduce some supply pressure
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
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 securities scheduled for buyback were 6.18 per cent 2024, 9.15 per cent Government Securities (GS) 2024, and 6.89 per cent GS 2025
The benchmark 10-year yield is likely to move in the 7.09-7.14% range, following its previous close of 7.1067%
India will report consumer price inflation data today
RBI had announced its plan to repurchase securities worth Rs 40,000 crore
The yield on the benchmark 10-year government bond fell by three basis points to settle at 7.16 per cent, against 7.19 per cent on Tuesday
Barclays' Kotecha eyes $20-$25 billion, with upside risks as an attractive carry, stable currency, and a positive macro backdrop and fiscal picture make Indian bonds attractive
The market will be closely monitoring the movement of crude oil prices given the geopolitical conflict heating up in the Middle East, said dealers
The 10-year govt bond yield surged 7 bps to its highest level in over two months tracking the rise in US Treasury yields
Banks must categorize bonds as 'held-to-maturity' on a permanent basis, with the exception of 5 per cent of the portfolio that can be withdrawn throughout the year, according to the new norms
The benchmark 10-year bond yield ended at 7.0934%, following its previous close of 7.1030%