Page 13 - India Bond Market

As Modi govt revises borrowing plan, yields on 5-year bonds move upwards

Bond dealers not very alarmed as this brings to an end the uncertainty on state and government GST compensation drama for now

Tide turning for bonds after RBI's liquidity bonanza, signs of recovery

The expectations are for the 10-year yield to drop further to 5.75%, a level last seen in July, according to a median estimate of 15 traders surveyed by Bloomberg

Bond dealers not sure of government's Rs 12-trillion borrowing plan

Most say there could be excess borrowing of at least Rs 1.5-2 trn in coming days

RBI devolves 10-yr bond auction for fourth time, underwriters step in

Bond dealers say the central bank has singled out the 10-year bonds as marquee rate setting bonds and is trying to put out a forceful rate signal

RBI refuses to sell another batch of 10-year bonds at market ask

This is the third straight auction of 10-year bonds that has devolved, leaving the market perplexed

In absence of GST compensation, states may cut FY21 capex by Rs 3 trn: ICRA

The borrowing alternative offered by the Centre to make up for the shortfall in the promised compensation will lead to the states' fiscal deficits widening to 4.25 - 5.52 per cent

Managing markets

Bond and currency markets would increase policy difficulties

RBI refuses to budge on bond rates, rupee strengthens to 6-month high

Central bank seems to have briefly withdrawn from intervening in spot currency markets, even as it continued with its forwards markets intervention

RBI sends signal to traders that bond yields may head higher in debt sale

The Reserve Bank of India sold a 30-year bond on Friday at a cutoff yield of 6.7596 per cent, versus the 6.65 per cent estimated in a Bloomberg survey

Global funds leave Indian bonds in spate as Covid-19 crisis worsens

Overseas funds have sold $14.6 billion of Indian corporate and government bonds this year, the most among emerging-Asian nations

'Bond market investors are likely to chase yields in the coming months'

The RBI may need to step in with larger purchases soon to keep yields from rising.This size of weekly auction can be absorbed in the market only if there is confidence on low yields, he says

Long-duration fund rally may halt as yields harden on rate-cut pause

Experts don't rule out RBI intervention to keep yields in check

India's bond market is so hot even Yoga guru Ramdev is selling debt

Borrowing costs on bonds have plunged after policy makers unveiled record stimulus to help combat the financial fallout of the pandemic

Part of 10-year bond left unsold in auction as traders demand higher yield

The cut-off yield in the auction of this bond came at 5.96 per cent, against its coupon of 5.77 per cent. The bond was launched just last week

Investment in sovereign-backed bonds: Be prepared for rate changes

You can invest as much as you like in these bonds, but they are subject to rate changes

Bond market warms up to NBFCs, but India's top-rated companies benefit

The liquidity situation for non-banking financial companies (NBFCs), which had been facing a crunch on this front for some time now, is improving.

In high-yield revival, global funds prefer Indonesia over India

The archipelago's debt is more attractive due to a superior fiscal outlook and the greater potential for currency strength

Bond market dealers watch out for RBI's unannounced purchases

It is hard to say if the OMOs are being done to soften yields, or to fill up the central bank's stock of bonds, but yields did not move up sharply in auctions

Foreign funds flee India's bonds just when it needs them the most

The amount of sovereign securities held by global funds has slumped Rs 76,700 crore ($10 billion) from this year's peak in February

RBI move to cut reverse repurchase rate fuels rally in short-term bonds

The yield on the 6.18 per cent 2024 bond fell 26 basis points to 5.48 per cent.