Overseas funds have sold $14.6 billion of Indian corporate and government bonds this year, the most among emerging-Asian nations
The RBI may need to step in with larger purchases soon to keep yields from rising.This size of weekly auction can be absorbed in the market only if there is confidence on low yields, he says
Experts don't rule out RBI intervention to keep yields in check
Borrowing costs on bonds have plunged after policy makers unveiled record stimulus to help combat the financial fallout of the pandemic
The cut-off yield in the auction of this bond came at 5.96 per cent, against its coupon of 5.77 per cent. The bond was launched just last week
You can invest as much as you like in these bonds, but they are subject to rate changes
The liquidity situation for non-banking financial companies (NBFCs), which had been facing a crunch on this front for some time now, is improving.
The archipelago's debt is more attractive due to a superior fiscal outlook and the greater potential for currency strength
It is hard to say if the OMOs are being done to soften yields, or to fill up the central bank's stock of bonds, but yields did not move up sharply in auctions
The amount of sovereign securities held by global funds has slumped Rs 76,700 crore ($10 billion) from this year's peak in February
The yield on the 6.18 per cent 2024 bond fell 26 basis points to 5.48 per cent.
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Such curtailed hours, in which bond and currency markets operated between 10 am and 2 pm, from 9 am to 5 pm in normal times, were in force till April 17
The cut-off yield for 10-year state development loans was at 7.60-7.65 per cent, whereas the 10-year government securities closed at 6.50 per cent.
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While the rupee hit its lifetime low of about 76.30 a dollar, the 10-year bond yields fell to 6 per cent, as Covid-19 led to an unprecedented slide in financial assets worldwide
Stock markets have also plummeted amid fears the global lockdown to contain the virus has tipped the world economy into a recession from which it will take year to recover.
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The benchmark 10-year bond saw trading volume of Rs 1,325 crore, and was the most traded one
While working from home, bond traders are doing bare minimum trade to cover their positions; there is also the expectation of a 50-150-bp rate cut