RBI BOND SALE
New system to ease FPI access to Gsecs awaits RBI nod
Foreign investors seek improved access to Indian bonds through global platforms, awaiting RBI approval. The new model aims for efficient trading with straight-through processing on the NDS-OM platform.
States to sell 2.64 lakh crore of bonds in July-Sept
Centre to issue T-bills worth Rs 2.60 lakh crore in Q2. In an indicative calendar released by the RBI on Friday, the central bank announced 13 sets of auctions in July-September through which states plan to sell bonds and raise funds.
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.
RBI's new valuation rule may hit banks' trading gains in Q1
Government bond yields have declined in the current quarter due to foreign inflows ahead of inclusion of domestic debt in JPMorgan's emerging market index. Yields on the 10-year benchmark government bond were at 6.99% on Thursday, down from 7.05% at the end of the March quarter.
Rupee ends flat; state-run banks' dollar sales aid, forward premiums slip
The Indian rupee closed nearly unchanged on Thursday as pressure due to dollar demand from local corporates was blunted by state-run banks' dollar offers, likely on behalf of the Reserve Bank of India, traders said.
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.
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Home loan borrowers may have to wait longer for lower EMIs but a rate cut likely this year; how to make the most of it
Home Loan Interest Rates: The Reserve Bank of India (RBI) in its recent Monetary Policy Committee meeting decided to maintain the repo rate at 6.5%, prolonging the wait for home loan borrowers seeking relief from high interest rates and increased EMIs. Despite the current pause in repo rate the possibility of a rate reduction this year is still there.
RBI to come out with norms for securitising stressed loans
RBI is set to release final guidelines for securitisation of stressed assets, potentially initiating a junk bond market in India.
Rupee falls most in over a year as vote count shows narrower win for Modi-led alliance
The Indian rupee slumped on Tuesday after vote counting trends signalled that Prime Minister Narendra Modi's Bharatiya Janata Party-led alliance would win a narrower majority than was expected, spurring a selloff in local equities.
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.
FIIs follow 'sell in May and go away' mantra ahead of election results with Rs 25,600 crore sell-off
In May, foreign institutional investors (FIIs) sold Indian stocks worth Rs 25,600 crore, aligning with the 'Sell in May and go away' adage. Increased net shorts in index futures, outperformance of Chinese stocks, and concerns about high valuations contributed to the sell-off.
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.
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.
RBI announces reduction in the quantum of the government’s treasury bill sales
The Reserve Bank of India (RBI) has responded to tight liquidity conditions in the banking system by announcing a significant reduction in the government's treasury bill sales and introducing a new selection of bonds for the Centre's buyback operations. This move aims to alleviate cash constraints for banks, which have been exacerbated by muted government spending during the ongoing general elections. By reducing the supply of treasury bills and offering bonds for repurchase at acceptable prices, the RBI seeks to inject liquidity into the banking system and ease borrowing costs for banks.
Bond buyback: Govt proposes, market disposes, over price
At a buyback auction of government bonds last week, the RBI accepted bids worth only ₹10,512.99 crore versus ₹40,000 crore worth of securities the government had offered to repurchase, with the central bank rejecting most bids.
ETP providers seek RBI nod to facilitate smooth g-sec trades for foreign investors
India's sovereign debt is set to be included in a JP Morgan bond index suite from June 28, while Bloomberg has announced the incorporation of domestic bonds in one of its indices from January 2025. Analysts expect the inclusions to lead to foreign investment inflows of $30 billion-45 billion into the local bond market.
Sovereign gold bonds premature withdrawal in May can earn 16.5% returns; key points to keep in mind while exiting SGB early
Sovereign gold bonds premature withdrawal: Investors holding SGBs issued earlier can redeem them prematurely in May with potentially attractive returns due to rising gold prices. How much tax will you have to pay if you withdraw prematurely? Should you withdraw your sovereign gold bonds early? ET Wealth Online explains the nitty-gritty of premature withdrawal of sovereign gold bonds and the key aspects an investor must consider before going for it.
RBI announces auction sale of Govt. securities of Rs 32,000 crore
The Reserve Bank of India has announced the auction for the sale of Government Securities worth Rs 32,000 crore. The auction is scheduled to take place on Friday and it aims to facilitate the sale (re-issue) of Government Securities through a multiple price-based method.
Rupee ticks up on foreign banks' dollar sales; forward premiums slip
The currency slipped to a record low of 83.5750 on Friday but recovered on the back of heavy intervention from the Reserve Bank of India (RBI), traders said.
Multiple price auctions show confidence in g-sec demand
The multiple price auction method was suspended by the RBI for most debt auctions in July 2021 amid severe market volatility due to sharp increases in government borrowing during the COVID crisis. While the method encourages deeper price discovery for bonds, it can result in higher cost of borrowing for the issuer - the government in this case - when market conditions are adverse.
RBI permits FPIs to invest in sovereign green bonds via IFSC
At present, foreign portfolio investors (FPIs) registered with the Securities and Exchange Board of India (Sebi) are allowed to invest in sovereign green bonds under the various routes available for FPI investment in government bonds.
Lower government borrowing in H1 to cool bond yields
On Wednesday, the Reserve Bank of India (RBI) said the Centre would borrow ₹7.5 lakh crore through bonds in the first six months of FY25. Bond sales in April-September represent 53% of the government's gross borrowing target of ₹14.13 lakh crore for the next fiscal, much lower than 63% last year.
Bond yields likely to spike as states line up record borrowings
On Tuesday, 17 state governments will sell bonds worth ₹50,206 crore, a record for a week, and 80% higher than the ₹27,810 crore earmarked for state issuances in their indicative calendar of borrowings, Reserve Bank of India data showed.
Multiple-price Method for Bond Auctions Likely
Another point discussed between the RBI and market participants was the idea of conducting a single auction of the 10-year benchmark bond once a month instead of the current practice of two sales of the benchmark paper every month, sources aware of the developments told ET.
HDFC Bank in talks for infra bond sale worth Rs 10,000 crore
“They have been making enquiries about a potential infra bond sale. Conditions in the bond market have improved of late because the Reserve Bank of India did not catch the market off-guard in its latest policy statement while more recently, the Federal Reserve has finally struck a dovish tone,” a source said.
RBI could defer OMO sales with liquidity deficit at over 4-year highs
"Pressure to carry out OMO sales has definitely come down significantly because liquidity conditions have stayed tight and more significantly it is the fall in core liquidity surplus that has played a prominent role in keeping liquidity conditions tight," said Abhishek Upadhyay, senior economist at ICICI Securities Primary Dealership.
India bond yields inch up before debt sale, US peers rebound
New Delhi aims to sell 390 billion rupees ($4.68 billion) of bonds. The auction includes 120 billion rupees of a new seven-year paper and 50 billion rupees of five-year green bonds.
RBI may need to use multiple price g-sec sales again for better rate transmission
In July 2021, the RBI announced a return to the uniform price auction method for primary government bond sales seven years after it said that such auctions would be held via the multiple price method.
RBI adds new weapon as Indian markets gear up for billions in index inflows
The Reserve Bank of India may consider selling bonds to sponge off surplus cash, Governor Shaktikanta Das said Friday, while keeping the policy rate unchanged. The surprise announcement soured the mood in the debt market, sending benchmark yields surging by the most in over a year
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