Page 4 - Government Securities

Ahead of Budget 2020, FPIs reduce bond exposure on unfavourable cues

There is fear that the RBI has no wiggle room for further rate cuts. Without rate support, yields will rise. This translates into a fall in prices for bonds

RBI buys three long-term securities worth Rs 10,000 crore in third OMO

Offers to purchase three securities, including 10-year benchmark govt bond

Twisting the curve

RBI's effort to address yield curve rise may not work as hoped

Banks surge on report govt may raise bond investment limit for FPIs to 10%

Additionally, sentiment at D-Street was bolstered by the latest amendments approved by the Cabinet Committee of Economic Affairs with respect to the Insolvency and Bankruptcy Code (IBC).

Mutual fund houses load up on government securities and treasury bills

MF schemes deployed Rs 1.8 trillion in G-Secs and T-bills in August, which is 52 per cent higher than in last August

Sebi urges unified G-sec, corporate bond market to spur economic growth

The Sebi chief said that the fragmented yield curve is a fundamental problem in the Indian bond market

Liquidity in secondary market for G-secs hugely improved in the past decade

Liquidity in G-Secs is mainly in a few benchmark securities, particularly the 10-year bench­mark

Not time yet to take duration risk as G-Sec yield softening could reverse

The risk of a reversal exists, one of them being crude

RBI to buy an additional Rs 400 billion worth of G-secs in December

With the latest announcement, OMO purchases by December-end will cross Rs 1.5 trillion

G-secs: A decent investment option provided you hold till maturity

The flip side is that while they shield you from credit risk, they aren't tax-efficient and are prone to interest-rate volatility

Bond yields rise after RBI announces it will buy Rs 100-billion govt debt

Surplus cash held by banks dropped to Rs 380 billion as of May 3 from a high of Rs 1.1-trillion in April

Spike in yield spooks equity investors; bank, financial cos stocks fall

State-owned banks such as Bank of Baroda and Allahabad Bank also declined 4%

Govt to borrow Rs 50,000 cr more this financial year

Move may impact fiscal deficit target of 3.2% of GDP

Bonds, call rates rebound

The 7.59 per cent government security maturing in 2026 gained to Rs 108.03 from Rs 107.05 previously

BSE to auction investment limits for Rs 4,615 cr govt bonds

The debt auction quota gives overseas investors the right to invest in the debt

India further cuts US govt securities exposure to $117 bn

Among the BRIC nations, India has the third largest holding of these securities after China and Brazil

Govt to sell 4 securities for Rs 15,000 cr on Jul 15: RBI

Both competitive and non-competitive bids for the auction has to be submitted in an electronic format