Page 3 - Government Securities

12 states raise Rs. 20,759 crore through auction, Tamil Nadu tops list

Tamil Nadu secured Rs 6,000 crore through two papers - Rs 3,000 crore through a 10-year paper with a cut-off yield of 7.66%, and Rs 3,000 crore through a 30-year paper with a cut-off yield of 7.56%

13 states raise Rs 19,692 crore; Karnataka, Uttar Pradesh top list

The cut-off yield on the 10-year state bond was set in a range of 7.62-7.63%, against 7.71-7.74% in the previous week

The gilt rush: Investors gild their portfolios in 'peak yield' euphoria

Government bond funds net Rs 2,000 crore investments in October

How NRIs can invest in govt bonds through RBI's retail direct scheme

In 2021, the RBI came out with the Retail Direct Scheme, a one-stop solution to facilitate investment in government securities by retail investors. NRI investors can also invest via the platform

Nine state govts, one Union Territory raise Rs 189 billion at bond auction

Cut-off yield highest in FY24 so far

Yield on high-rated NBFC to harden further by December, tracking g-sec

The AAA-rated bond yields settled at 7.83-7.92 per cent on Monday, whereas, the yields on AA-rated bonds settled at 8.63-8.66 per cent

JP Morgan adds India to emerging market debt index; may boost G-secs

Industry experts say anything between $20 billion and $30 billion could flow in, at least on paper. There could also be more interest in Indian G-Secs among foreign investors

Govt securities, forex market to remain operational on Thur, Fri: RBI

Government securities, foreign exchange, money and rupee interest rate derivatives markets will remain open on Thursday and Friday, according to the Reserve Bank of India. The Maharashtra government has declared September 29 as a public holiday under Section 25 of the Negotiable Instruments Act, 1881. The public holiday on September 28, 2023 declared earlier has been cancelled. "To ensure smooth functioning of the financial markets and non-disruptive settlement of transactions especially in view of the quarter/ half year end, it has been decided, in public interest, to keep the government securities market, foreign exchange market, money market and rupee interest rate derivatives market operational on September 29, 2023 in addition to being operational on September 28, 2023," the RBI said in a statement on Wednesday. It further said settlement of the auction of Government of India treasury bills conducted on Wednesday (September 27) will take place on September 29, 2023. The auctio

Retail investors prefer treasury bills over sovereign govt bonds

T-Bill returns attractive than bank FDs

Monetary policy, rate transmission are asymmetric, says SBI report

In comparison, the shorter tenure - 3-year AAA corporate bond has seen a 31 basis points decline in spread as the market is unlikely to have factored in adequate risk premium

Five states raise Rs 5,250 crore through an auction of govt paper

The Reserve Bank of India (RBI) data showed that Telangana raised the highest amount of Rs 2,000 crore through two bonds

3 states, 1 UT raise Rs 5.6K crore in bond auction, TN tops the list

Yields on 10-year state paper harden further

At 8.15% for FY23, EPFO returns are second lowest in over 45 years

EPFO's return in 1977-78 was 8%. It has since been 8.25% or more; the peak was 12%, a rate that remained unchanged between 1989-90 and 1999-2000

Treasury yield curve inverts: What it means and what does it signal?

Yield curve inversion suggests that the market is becoming more pessimistic about the economic prospects for the near future

RBI issues draft norms for lending and borrowing of government securities

The Reserve Bank of India on Friday came out with draft norms for lending and borrowing of government securities with wider participation in the securities lending market. Earlier this month, the RBI proposed introduction of securities lending and borrowing in government securities (G-secs) with an aim to facilitate wider participation in the securities lending market by providing investors an avenue to deploy idle securities and enhance portfolio returns. "Government Securities Lending (GSL) transactions shall be undertaken for a minimum period of one day and a maximum period of ninety days," said the draft Reserve Bank of India (Government Securities Lending) Directions, 2023. It has invited comments from banks, market participants and other interested parties by March 17, 2023. The draft said government securities issued by the central government excluding Treasury Bills would be eligible for lending/borrowing under a GSL transaction. Government securities issued by the central

Selecting a target maturity fund based on your horizon and risk appetite

Constitution of underlying indexes doesn't matter since all the three categories of bonds they invest in are safe

States' average borrowing cost continues to remain almost flat at 7.68%

The borrowing cost of states continued to remain low for the second week with the latest auction on Tuesday seeing average yield staying almost flat at 7.68 per cent. Many states stayed away from the market following disbursal of the tax devolution amount by the Centre earlier this month. The weighted average yield/cut-off of State Government Securities (SGS) inched up by 1 basis point to 7.68 per cent at the auction on Tuesday compared to the past week despite a sharp increase in the weighted average tenor to 17 years from 12 years, Icra chief economist Aditi Nayar said in a note. Normally bond prices change according to the tenor of the issue, and the 10-year bonds are considered the benchmark when it comes to pricing and also from a demand perspective. At Tuesday's auction, the states issued bonds of varying tenor, peaking at 25 years (Tamil Nadu issued 25-year paper at 7.63 per cent) pushing up the median average tenor sharply to 17 years from 12 years last week. However, the

AMCs line up differentiated target maturity funds amid stiff competition

Yield-to-maturity between 7.36% and 7.5% for these schemes with fixed tenure makes them attractive bet

Reserve Bank starts pilot digital currency program for select banks

Banks traded Rs 275 crore ($33.3 million) of bonds on the first day using the new form of currency, data showed

States borrowing cost rises for third week, jumps 12 bps to 7.77%

At the latest auction of debt, 10 states raised Rs 19,500 crore on Monday, drawing down the full amount indicated for this week.