India’s Sovereign Bonds

Reserve Bank of India, the nation's debt manager, is preparing to sell its first ever batch of sovereign green bonds as early as next month, according to people with knowledge of the matter

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

JPMorgan, this week, has sought views from the investors on whether it should include India's sovereign bonds in its GBI-EM Global Diversified Bond Index or not

Indian bonds have declined in tandem with a slide in the rupee. The currency is now hovering close to a record low against the dollar as elevated commodity prices stoke inflation and boost the subsidy

Both regions seek to attract big money to build renewable capacity and prune reliance on Russian gas following the outbreak of the Ukraine war

The inflation shock is adding to uncertainty on whether the central bank would stick to its pledge of keeping policy accommodative to support growth after economy was battered by a deadly Covid wave

India's move toward higher bond yields and interest rates will be another milestone in the recovery of global financial markets from the ravages of the coronavirus.

Rising Covid-19 cases force reassessment among investors who had hoped that less-severe curbs.

The govt needs to examine its options to join global central securities depositories without ceding tax sovereignty. This could considerably delay India becoming a part of global bond indices.

There's growing consensus among traders that the RBI will have to start draining excess cash from the banking system, as abundant liquidity crashed short-term rates and threatened to stoke inflation

The RBI held the repurchase rate at 4 per cent, as it chose to wait for inflation to cool before adding to steps aimed at supporting a fragile economy

The government is facing a Budget deficit of as high as 7 per cent of gross domestic product, the widest in more than two decades, according to some estimates.

In comparative terms, India has been a laggard among Emerging Markets in 2020. The downgrade just makes the task of its economic recovery a little more daunting

The yield on the most-traded 6.45 per cent 2029 note dropped 10 basis points to 6 per cent, extending Wednesday's 7-basis point fall.

Yields on 10-year bonds slid as much as eight basis points to to 6.08 per cent after surging by as much as 12 basis points earlier.

Debt of Centre and states combined is over 70% of GDP already; country is currently just a notch above junk

Another 50 basis points of rate cuts may be on the way, according to a revised forecast by Goldman Sachs Group Inc

At the end June 2019, the RBI's foreign exchange (FX) reserves amounted to about $422 billion. This is around 15 per cent of GDP way below the 26 per cent of GDP level of FX reserves in 2007-08

Investors are wondering if India will press ahead with a foreign-currency debt sale, opt for the issuance of rupee-denominated notes, or ease foreign ownership limits on local markets instead

Now that $10 billion in subscription checks won't be coming in October, the domestic Indian bond market will feel the pressure of higher borrowings locally by the government