INDIA FAR BONDS
India bond yields edge lower tracking US peers
Indian government bond yields ended lower on Wednesday amid a pullback in U.S. Treasury yields, while traders still assessed the pace of foreign inflows into debt after domestic securities were included in a global index.
India’s long bonds have become a crowded trade, Edelweiss warns
Edelweiss Government Securities Fund excels in performance, positioning itself as a market leader. Foreign investors' sustained involvement in Indian sovereign bonds is still uncertain, impacting market dynamics.
India bond yields may see further uptick as US peers jump
Indian bond yields expected to increase amidst renewed Treasuries selloff. Benchmark 10-year yield likely to stay within 6.99%-7.03% range. U.S. yields rising, with expectations of a 46 bps rate cut by the Fed in 2024.
No Friday blockbuster for bonds on JPM index
Indian bonds debuted in JP Morgan's GBI-EM global index suite on Friday, with the country expected to reach a maximum weight of 10% in the GBI-EM Global Diversified Index over a 10-month period. JP Morgan's analysts expect foreign investment worth $20-25 billion to flow to the local bond market from the move.
First day JPM flows not a deluge, but bankers confident of steady flow going ahead
From Thursday to Friday, foreign portfolio investors (FPIs) increased their holdings in the index-eligible Fully Accessible Route (FAR) suite of government bonds by Rs 1,545.16 crore, bringing the total to Rs 1.86 lakh crore, according to data from the Clearing Corporation of India Ltd (CCIL) released at 6 pm. This increase left traders somewhat disappointed, as some market segments had anticipated a surge exceeding Rs 10,000 crore on Friday alone.
India's entry into JPMorgan Bond Index set to benefit real estate & manufacturing: Abhishek Banerjee
Analyzing India's economic shifts from surplus to GDP growth projections, Abhishek Banerjee says the focus lies on potential impacts on export sectors and bond markets, indicating promising growth opportunities in the economy. While India's increased production and exports are positive, the shift necessitates careful sector allocation in the near term to manage potential impacts on export-oriented industries.
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What JP Morgan bond index inclusion means for India's economic future? Jayesh Mehta answers
This is significant, as you mentioned—it's a notable event. The only caveat is that this recognition of India should have come much earlier, but finally, India has been acknowledged.
India set for more global attention as bond inclusion begins
India's government bonds enter JPMorgan's index, attracting billions in inflows, driven by positive economic indicators, high yields, and market performance, positioning India as a top choice for global investors.
Bank of Maharashtra to issue tier-II bonds, bankers say
The bonds have a call option at the end of five years. Here is the list of deals reported so far:
India inclusion in JP Morgan Bond index from today, $25-30 bn flow expected. What it means
India, which has been on index watch since October 21, upon its inclusion will have the single highest duration across the index at 7.03 years, with an above average yield-to-maturity at 7.09%, a JP Morgan note said.
India a very attractive destination for fixed income investors: Vikas Goel
So, obviously, we are still underrepresented. So, compared to, say, a similar economy like Indonesia, etc., we will go from 2.5% to about 4% I think after the inclusion which is fairly-fairly insignificant even if we compare it to our equity markets where foreign investment is much-much higher as a proportion of total investment.
Strong dollar will continue to cause problems for emerging markets and commodities in 2024: Adrian Mowat
The Emerging Market funds that have been doing well have been very overweight in India and they may not feel comfortable in increasing that overweight. The Indian bull market is very much a story of strong domestic fundamentals and a robust savings pool in India buying its market, says Adrian Mowat
Funds circling India debt risk being tripped Up by red tape
China's tax exemptions on bond investments set a precedent for India's sovereign debt market, likely attracting more foreign investors. The hurdles faced by outsiders in accessing the market include lengthy documentation, tax treaty variances impacting returns, and the need for registration via custodian banks for trading in certain bonds.
Vedanta mulls 1st dollar bond sale of $500 million
The bond sale could climb to $1 billion depending on the response from investors, according to one of the people. The company is also exploring other avenues of fundraising, including equity sales and local currency loans from domestic banks, the people said.
India bond yields seen little changed amid lack of fresh cues
Indian government bond yields are expected to hold steady on Monday, moving in a 6.95%-6.99% range. Inflows under the FAR, crossing $10 billion, and foreign banks' increased bond purchases ahead of the inclusion affect U.S. Treasury yields.
Forex reserves soar to a new high of $655.8 billion as on June 7
The Reserve Bank of India's foreign exchange reserves reached a record high of $655.8 billion for the second consecutive week, driven by foreign currency assets rising $3.7 billion to $576.3 billion. The increase was likely due to the RBI's dollar purchases after the rupee appreciated. Foreign portfolio investors have deployed $7.11 billion in Indian debt so far this year, ahead of the JP Morgan bond index inclusion.
10-year benchmark sovereign bond yield slips below 7% as inflation cools in India and US
Yield on the 10-year securities retreated to 6.98% Thursday after India's retail inflation eased to a one-year low of 4.75% in May, as against an 11-month low of 4.83% the previous month.
India bond market to wait for fiscal roadmap clarity before next rally, says Citi
Investors are waiting for clarity on India's fiscal consolidation path in the upcoming government budget before driving the next bond market rally, according to a Citi India executive.
India bond yields seen rising tracking US peers
Indian government bond yields are expected to rise due to a spike in U.S. Treasury yields after strong economic data. The benchmark 10-year yield in India is likely to move in a 7.01%-7.06% range on Monday.
Leading Indian hedge fund Avendus Capital sees banking as a top bet
Avendus Capital CEO Holland uncertain about pre-budget rally, mentions potential capital gains tax change ahead of India's full budget presentation in July
BlackRock stays bullish on Indian bonds after narrow Modi win
Neeraj Seth, chief investment officer at BlackRock, predicts that India's fiscal consolidation under Modi's leadership will continue. Cooling inflation may lead the Reserve Bank of India to ease later this year, supporting the preference for longer duration bonds like the seven and 10 year ones.
RBI to conduct buyback auction of government bonds worth Rs 30,000 crore
The RBI, which is the Centre’s debt manager, will carry out the auction in which banks and other bond market participants can buy back five government securities, the central bank said on Monday. One of the securities matures this month while another one matures in July. Three of the securities will mature in November.
RBI to face problem of plenty: Prepare for bond sales
The RBI's challenge for the year may not be inflation but liquidity. Government spending resumption and overseas fund flows complicate monetary policy effectiveness.
Foreigners boost India corporate debt buying before govt bond index inclusion
Foreign investors show increasing interest in Indian rupee-denominated corporate debt ahead of the inclusion of Indian government securities in a global bond index, expecting passive inflows of around $25 billion. Recent data highlights purchases in corporate bonds, interest in launching ETFs, and robust demand for dollar bonds.
India’s index-eligible bonds set for best performance in a year
Indian government bonds set for inclusion in JPMorgan Chase & Co. index demonstrate strong performance with foreign inflows surging post record central bank payout. Analysts view IGBs as attractive despite yield drops, suggesting potential in swaps.
Easing global yields bring FPIs back to Indian govt bonds
From May 8 to 22, foreign portfolio investors' holdings of fully accessible route (FAR) Indian government bonds increased ₹3,304.8 crore to ₹1.6 lakh crore, showed latest data on the Clearing Corporation.
FPIs withdraw Rs 17,000 crore from equities in May so far on political uncertainty
This was way higher than a net withdrawal of Rs 8,700 crore in the entire April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields
Most clients set up to trade in Indian bonds before index inclusion: JP Morgan
India's upcoming inclusion in JP Morgan's GBI-EM Global Index Suite involves positive market feedback and enhanced accessibility for FPIs through Fully Accessible Route bonds, leading to increased interest from investors globally.
India still under FTSE Russell consideration
"There are criteria for a Market Accessibility Level of 1 the market does not satisfy, including the documentary requirements to fulfil the Foreign Portfolio Investor (FPI) registration, increased regulatory reporting, the inflexible length of the settlement cycle and the tax clearance process," an FTSE note read.
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