India Bond Market

Their growing footprint mean that the state will be less reliant on banks over time, while reducing anxiety among traders over how Modi's infrastructure-building spree will be funded

Even though the states have borrowed heavily from the market -- bond issuances at the weekly auction on Tuesday rose sharply by 42 per cent -- the average prices came down by 7 bps to a three-week low of 7.61 per cent. Twelve states have raised Rs 20,300 crore through state government securities on Tuesday, which is a sharp 42 per cent increase on-year, though the amount raised is 23 per cent lower than what was indicated for the week in the auction calendar. Accordingly, the weighted average cut-off eased considerably by 7 bps to 7.61 per cent, which is a three-week low, despite the weighted average tenor remaining stable at 15 years, according to a note by Icra Ratings. The spread between the 10-year state bonds and the new G-sec stood at 38 bps today, while same between the 10-year state bonds and old G-sec rose a notch to 34 bps from 33 bps last week. This had the yield curve remaining inverted at the longer end, the agency said.

India is putting its first sovereign green bond on the radar of some of its biggest domestic asset managers, including state-run insurers and pension funds as well as foreign investors

In November, nearly half the dynamic bond fund (DBF) schemes raised the allocation to medium-to-longer-duration papers

Launches country's first surety bond product, says instrument offers relief to contractors; govt has built in safeguards to protect insurers as well

Many of the world's big bond fund managers are optimistic that sovereign debt markets have turned a corner after a rout in 2022 with peak inflation and interest rates finally in sight

The base issue size for ICICI Bank's infra bonds was Rs 1,000 crore with green shoe option of Rs 4,000 crore

Investors need to be cautious and look beyond market highs

Registering online bond platforms as stockbrokers will ensure transparency and protect investors' rights. However, investors must ensure that they are dealing with market participants

The benchmark 10-year Indian government bond yield ended at 7.3957%, after rising five basis points (bps) to 7.4454% on Monday

Dealers said Bengal and UP raised amounts via bonds with 15-17 year maturity and cut-off yield above 7.9%; pricing likely to remain under pressure in near term

The spread between Indian government bond yields and their corporate counterparts is expected to widen in the second half of this year

As of mid-2022, there are 26 countries with combined volumes of $227 billion in sovereign green debt

The government doesn't plan to waive capital gains taxes, and it's concerned that foreign inflows will increase the volatility of local markets

Call rate closes at highest since October 2019 as liquidity tightens

RBI asked for mkt views on BoP, impact of 75-bps rate hike by US Fed

Spread between 10-yr G-sec and 2-yr bond yields narrows to 38-mth low

Foreign investors held a smaller share of government securities as of September than they did in March

Apart from long-term bonds, the market participants also requested the central bank to reduce issuance of floating-rate bonds and cap sizes of weekly primary auctions to Rs 30,000 crore

AT1 issuances are likely to cross Rs 20,000 crore mark as banks rush to tap capital markets