Page 3 - Government Securities

Yield spread between state bonds and g-sec widens to two-year high

The yield spread widened to 53 basis points on Tuesday. The last time the yield spread widened above 50 basis points was in January 2022

Treasury income's contribution to bank P&L's in Q3 to be modest: Analysts

The widening of the spread on state-government paper over central government bonds may work as a dampener, according to treasury executives

States' debt cost crosses 7.70%, spread between G-sec jumps to 2-year high

At the first weekly auction of the last quarter of 2023-24, the states saw their interest burden sharply rising to cross the 7.7 percentage mark on Tuesday, leading to the spread between the cut-off of 10-year state bonds and the G-sec yield crossing the 50 basis points mark for the first time in two years. At 53 basis points, the spread between the yield on the sovereign debt and that of the state bonds is the highest since January 2022. According to Aditi Nayar, the chief economist at Icra Ratings, both coupons at 7.71 per cent and the spread jumped to record levels due to the concerns of large supply in the final quarter of the fiscal year. At the maiden auction of the fourth quarter, six states collectively raised Rs 16,000 crore through state government securities (SGS) which is 19 per cent on-year higher, and in line with the amount indicated for the week in the Q4 auction calendar. Taking a cue from the all-time high indicative borrowing of Rs 4.1 lakh crore in the final ...

RBI implements govt securities lending directions with immediate effect

In February of the same year, the central bank had released draft norms for lending and borrowing of government securities aimed at expanding participation in the securities lending market

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