Page 3 - Bond Market

Global bond index providers reach out to India amid geopolitical shifts

Recent rally in bonds despite US bond selloff signals optimism on global index inclusion

AT-1 bond returns are attractive compared to FDs, but factor in the risks

Their spread over G-Secs of comparable maturity have also declined compared to historical averages

'JP Morgan may include G-Secs in global bond index as early as next week'

Even though the government is yet to make up its mind on inclusion of G-Secs (Government Securities) in global bond indices, Wall Street brokerage Morgan Stanley expects indices major JP Morgan to make an announcement in this regard as early as next week. On Monday finance minister Nirmala Sitharaman told an industry gathering that the 2020 budget proposal on allowing bond inclusion in international indices could not move forward as the fund flows did not meet the desired levels, due to many reasons including the Covid pandemic. Without offering any details like a timeline or the tax and stamp duty breaks that investors were demanding, Sitharaman said: "I don't know whether we're holding it back or not. I think global situation changed a lot since I made that statement in the 2020 budget. "Global fund flows have not been as big as we wanted it to be primarily due to other reasons. So it'll come to its natural, logical conclusion soon." According to the RBI data, G-Secs outstanding

US Fed shrinking balance sheet at a much slower pace than planned earlier

As a result, the yield 10-year US government bond is down 14 per cent in the last seven weeks while the S&P 500 up 11.3 per cent in the period

Asian stocks outside China see greater outflow than previous market crises

Global funds offloaded a net $40 billion of equities across seven regional markets last quarter, exceeding any three-month period characterised by systemic stresses since 2007

China takes fresh steps to open $20 trillion bond market to foreigners

Overseas investors reduced holdings of Chinese bonds for a fourth consecutive month in May, as diverging monetary policies kept Chinese yields pinned below their US counterparts

HDFC raises Rs 4,000 cr via 21-month paper, attracts bids of over Rs 70K cr

Companies, including HDFC, Tata Capital Financial Services, LIC Housing Finance and Haldia Petrochem raised over Rs 6,000 crore on Wednesday

Market may fall further to compensate for sharp rise in bond yields

The equity and the bond market are joined at the hip through respective yields on both instruments

India share of global green bonds off highs despite record issuance in 2021

The money raised in 2021 is 58.1% higher than $4.3 billion raised in 2017. A lower share would indicate that other countries have been making more use of the mechanism

Bond trade gains of banks may be down 30%, says India Ratings

The rating agency's assessment showed the yield on benchmark 10-year government bonds rose 66 basis points in FY22 to close at 6.84 per cent from 6.18 per cent at the end of March 2021

Global fund managers turned more defensive in March: Poll

The March 21-31 survey captured this defensive strategy many fund managers adopted after the Russia-Ukraine war broke out

Explained: How bond yields impact stock market & what should investors do?

A rally in the stock market tends to raise bond yields as money moves from the relative safer investment bet to riskier equity stock markets

Oil price surge turns India's bonds into most risky in emerging Asia

A selloff in India's bond markets, including its corporate debt, is gathering pace as oil prices extended their rally above $110 a barrel after Russia invaded Ukraine

Top headlines: Grover quits BharatPe board, India's Ukraine evacuation

The RBI is also gauging the extent of damage to the Indian banking sector amid the Ukraine crisis. More on this and other stories in our top headlines this morning.

Record borrowing to make India's unlikely bond rally short-lived

Canceled auctions and a dovish central bank decision drove benchmark yields down by more than 20 basis points in the past two weeks.

Pay heed to residual maturity in secondary market bond buys: Experts

Avoid longer-duration bonds; if you buy them, hold till maturity

Will the RBI policy calm bond markets? Here's what analysts think

High borrowing numbers in the budget as well as absence of any steps to facilitate global bond index inclusion roiled the domestic markets, pushing the yield on the benchmark debt to 6.8

Japan's 5-year govt bond yield scales zero on policy expectation

The selling of JGBs forced 5-year yields above zero percent for the first time in six years, and came on the heels of the Bank of England's rate rise on Thursday

Yield on new 10-yr paper hardens by 8 bps over RBI cut-off point

The closing yield for the 2032 govt bond was 6.62% on Monday; RBI cut-off at auction was 6.54%

Pandemic concerns may have prompted RBI to go slow on liquidity operations

It was widely expected RBI would announce a three-day reverse repo auction of Rs 2 trn, rolling over last such auction conducted on Monday; that did not happen during market hours