India Bond Market

India's $1 trillion sovereign bond market sees rising clout of insurers

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

States bond prices down by 7 bps to 7.61% despite sharp spike in supply

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.

Centre ready to test green bond market with debut $2 billion sale

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

Invest in long-term debt? Dynamic bond fund managers on the fence

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

Gadkari wants surety bond insurance, not bank guarantee for infra projects

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

Bludgeoned bond markets hope peak inflation to bring revival: Analysis

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

ICICI Bank raises Rs 5,000 cr via infrastructure bonds for funding projects

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

Caveat emptor

Investors need to be cautious and look beyond market highs

Towards a vibrant bond market for retail investors

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

Bond yields fall on 10-year US yield's drop below 4%, subdued oil

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

Average cut-off yield spikes by 12 bps to 7.84% at state bond action

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

Govt, corporate bond yield spread to widen on rising supply: Analysts

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

Sovereign Green Bonds: What lessons can India draw from other nations

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

India rules out tax policy changes for inclusion of bonds in global indices

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

Bond yields fall on short-covering; market still hopes for index inclusion

Call rate closes at highest since October 2019 as liquidity tightens

RBI, bond market players discuss liquidity strategy as surplus dwindles

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

Narrowing bond yields signal liquidity squeeze in markets, shows data

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

Statsguru: Six charts explain India's entry into global bond indices

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

Buoyed by demand, banks want more long-term gilts, but RBI may not yield

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

Canara Bank, PNB likely to issue Rs 3,000-crore AT1 bonds this week

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