INDIA GOVERNMENT BOND
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.
Rate sensitivity on the rise in PSB portfolios
"The AFS (available for sale) portfolio's sensitivity (PV01) increased for PSBs (public sector banks) and FBs (foreign banks) since September 2023, while it declined for PVBs (private banks)," the Reserve Bank of India (RBI) said in its June 2024 Financial Stability Report.
007 Effect! JPMorgan bond inclusion can attract $2-3 billion monthly FII inflows into India
Since October 2023, non-residents have invested nearly $15 billion in Indian government bonds, including $5 billion through USD-settled, INR-denominated supranational bonds. Starting from Friday, passive fund inclusion will begin at a rate of 1% per month, leading to total inflows of $25-30 billion by the time full weightage is reached.
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 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.
Gilts to shine brighter from tomorrow
JP Morgan will include 27 fully accessible Indian government bonds in its GBI-EM global index suite starting June 28, allowing global investors to deploy funds in these bonds.
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Road construction down by 12.1% to 1288 km in the current financial year up to May 2024
As per the monthly update, released the ministry of road transport and highways (MoRTH) on Wednesday, the capital expenditure incurred during the period stood at Rs 57,925 crore till May 2024, which is 42.5% of the capital outlay under the vote on account provision for the first five months of 2024- 25.
Rate cut hopes, inclusion in JPM index fuel ‘FOMO’ trades in GSecs
Indian sovereign debt players bond with bonds following Mint Road's move to decelerate rate-increase drive and JPMorgan's recognition. CCIL data shows a 40% increase in monthly trades, reaching ₹8.6 lakh crore in 2023.
RBI using forex market tools to ease liquidity tightness
RBI uses forex tools to inject cash into banking system ahead of large outflows due to advance tax payments, keeping borrowing costs low and increasing reserves without impacting inflation-fighting stance.
Game's Bond, Electoral Bond: Two reforms that India's new government should undertake
All political funding should be routed transparently through electronic means, via UPI, IMPS, Neft or RTGS. Let parties crowdfund themselves. In a democracy, money should move from the people to their parties, not from politicians to voters.
Green flavour not enticing enough for bond investors
Green bonds in India face challenges due to the absence of financial institutions focusing on green financing and investors enthusiastic about environment protection. Follow-up issuances have dried up a year after the first government green bond sale.
Insurers lap up GSec derivatives to manage liabilities
Global funds and insurers are showing strong demand for Indian government bonds, particularly ahead of their inclusion in a JP Morgan index. Insurers are increasingly interested in Bond Forward Rate Agreements (Bond-FRA) to manage long-term liabilities, with significant trading activity reported by Clearing Corporation of India (CCIL).
RBI accepts bids of over Rs 7,200 cr for bond buyback
The RBI accepted bids worth ₹7,287.56 crore in a government bond buyback auction out of ₹30,000 crore offered by the Centre.
RBI accepts bids worth Rs 7,287.6 cr in Rs 30,000 cr bond buyback auction
Last month, after a six-year hiatus, the RBI resumed conducting buyback auctions on behalf of the government. However, the government has only repurchased a small portion of the bonds offered, as both the Centre and the RBI have been reluctant to accept bids from banks at very high prices or low yields.
India 10-year bond yield sees biggest spike in 8 months on poll results uncertainty
Indian government bond yields surged as early voting trends showed Prime Minister Narendra Modi's NDA leading, causing the benchmark 10-year yield to jump to 7.0130%.
Bonds, rupee stage strong rebound on poll outlook
Government bond yields closed at their lowest in over two years, and the rupee saw its largest single-day gain since December, driven by exit polls predicting a strong NDA victory in the general elections.
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.
Indian rupee, bonds expected to rally after exit polls signal Modi victory
The Indian rupee and government bonds are likely to strengthen following exit polls favoring Prime Minister Narendra Modi's National Democratic Alliance, potentially boosting market sentiment.
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.
RBI, govt accept no bids at first sovereign green bond auction of FY25
With the Centre sitting on a considerable cash surplus at the moment, it had likely opted to cancel the green bond auction than settle for a lack of a premium, or “greenium” at the auction. The government had planned to raise Rs 6,000 crore through 10-year green bonds at Friday’s auction.
Govt bond buybacks continue to face weak participation
At Thursday’s buyback auction of government bonds, the RBI accepted bids worth Rs 5,111.29 crore versus the notified amount of Rs 40,000 crore worth of securities that the Centre had offered to repurchase, latest central bank data showed.
Goldman sees India's stocks, bonds and rupee as top emerging market picks
Strong earnings growth is supporting the share market, while the country’s inclusion in international indexes, stronger government finances, and slowing inflation favor fixed income, analysts led by Kamakshya Trivedi, Danny Suwanapruti and Sunil Koul wrote in a note.
India likely to cut borrowing on narrow spending window
Mirae Asset Investment Managers India Pvt. predicts a potential reduction in India's borrowings this fiscal year due to the national elections narrowing the spending window by about three months. Lower bond sales could decrease borrowing costs for the government and companies, potentially boosting economic growth in the third-largest Asian economy.
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 long-term bonds attract foreign investors as JPMorgan index inclusion nears
Overseas investors are buying longer-duration Indian government bonds in anticipation of inclusion in JPMorgan's emerging market debt index, expecting significant passive flows. Bonds with maturities of 10 years and more, notably the 7.18% 2033 and 7.30% 2053, have attracted foreign ownership amidst net selling of government bonds in recent weeks.
Indian bonds continue positive drift; benchmark yield stays below 7%
Indian government bond yields trading lower on hopes of central bank's surplus transfer improving fiscal position. Benchmark 10-year yield at 6.9924% on Monday, down from previous close of 6.9988%.
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.
Indian 10-year bond yield at near 1-year low post record surplus transfer by RBI
Indian government bond yields declined to a near one-year low after the central bank approved a record surplus transfer of 2.11 trillion rupees to the government, improving demand in Indian debt markets. Alok Singh from CSB Bank mentioned that the 10-year yield should move below 7% soon.
Despite offer of new securities, govt bond buybacks yet to come to life
At the buyback auction on Tuesday, the RBI accepted bids worth Rs 5,266.04 crore as against the aggregate notified amount of Rs 60,000 crore worth of bonds that the government had offered to repurchase.
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