Shields banks from adverse impact from bond portfolio
Constitution of underlying indexes doesn't matter since all the three categories of bonds they invest in are safe
The borrowing cost of states continued to remain low for the second week with the latest auction on Tuesday seeing average yield staying almost flat at 7.68 per cent. Many states stayed away from the market following disbursal of the tax devolution amount by the Centre earlier this month. The weighted average yield/cut-off of State Government Securities (SGS) inched up by 1 basis point to 7.68 per cent at the auction on Tuesday compared to the past week despite a sharp increase in the weighted average tenor to 17 years from 12 years, Icra chief economist Aditi Nayar said in a note. Normally bond prices change according to the tenor of the issue, and the 10-year bonds are considered the benchmark when it comes to pricing and also from a demand perspective. At Tuesday's auction, the states issued bonds of varying tenor, peaking at 25 years (Tamil Nadu issued 25-year paper at 7.63 per cent) pushing up the median average tenor sharply to 17 years from 12 years last week. However, the
Banks expressed concerns about trade impact, disruptions seen in OIS, bond markets
The Deputy Governor flagged instances of wild swings in sovereign bond yields in response to factors such as the announcement of the government's borrowing programme and interest rate changes
Since this is a nascent category to invest, there could be liquidity risk
Check the return for your age, tenure, and premium variant, and if proceeds will be tax-free
Those keen on locking in interest rates for very long tenures should also opt for them
The IPO-bound national insurer LIC is not only the largest holder of government debt -- owning 19 per cent of the G-secs -- but also the single largest owner of equities
During H1, banks were investing in G-secs and are not under stress due to rising yield
Stick to shorter tenure fixed deposits now to benefit from higher rates later
On Wednesday, the yield of 10-year G-Sec was trading at 6.88 per cent
How does the government raise funds to meet its obligations, in excess of its annual revenue generation? Well, it issues Treasury Bills or T-Bills. This report tells us more about it
Prime Minister Narendra Modi had launched the RBI Retail Direct Scheme launched on November 12, 2021, to provide one-stop access to facilitate investment in government securities by retail investors
Traders are expecting the central bank to come in with some form of support to help the market ahead of the debt sale on Friday
As of August, fund managers hold Rs 75,243 crore in CPs of NBFCs as against Rs 49,090 crore last year
The Reserve Bank on Monday said it will conduct an open market purchase of government securities aggregating to Rs 15,000 crore under the G-sec Acquisition Programme (G-SAP 2.0) on September 23. On a review of current liquidity conditions, the central bank also decided to conduct a simultaneous sale of government securities under open market operations (OMO) for an aggregate amount of Rs 15,000 crore on the same day. In a statement, the RBI said it will purchase three government securities of different maturity dates amounting to Rs 15,000 crore. It will also sell three government securities amounting to Rs 15,000 on September 23. The central bank further said it reserves the right to decide on the quantum of purchase and sale of individual securities. The result of the auctions will be announced on the same day.
He reiterated his stance that G-Sec is a "public good", as it is the benchmark for pricing various instruments in the economy
Corporate bonds are driven mainly by two factors - domestic liquidity and foreign portfolio flow
RBI on Thursday said the next purchase of government securities for an aggregate amount of Rs 20,000 crore under the G-sec Acquisition Programme (G-SAP 2.0) will be conducted on July 22