BOND YIELD DEFINITION
Foreigners buy Indian debt on eve of JPMorgan index inclusion, indicators signal
Currency market reacts to India's JPMorgan index inclusion with increased foreign buying and dollar transactions by large banks. Traders anticipate passive inflows despite the rupee's limited appreciation. RBI expected to manage the market dynamics prudently.
Bond Street to see $2-3 billion foreign inflows a month after inclusion in JP Morgan Index
"We have a different profile spread across clients. There are real money clients who may be investing in India off-benchmark. Then there will be the passive index trackers who will be the regular ones coming each month and we may see some large allocations come in intermittently. So, around $2-3 billion per month is what we expect," Parul Mittal Sinha, head - financial markets, India & co-head, macro trading, ASA, Standard Chartered Bank, told ET.
Japan's Nikkei slumps to weekly loss as Fed outlook weighs
Japan's Nikkei share average fell 1.17% to 38,646.11, influenced by Wall Street's decline due to U.S. economic data impacting Federal Reserve rate cut expectations. The Nikkei, down 0.36% for the week, saw chip stocks like Advantest and Tokyo Electron decline, influenced by Nomura Securities' analysis and 25-day moving average support.
How will RBI's Rs 2.11 lakh cr dividend payout to government help Indian economy? A Balasubramanian answers
So, I think combination of these two things put together have made RBI to come with about highest ever dividend, especially at a time where the market is also generally getting, not market, in general, the bond market keeps a very close eye on fiscal numbers.
Global bond play: With depth will come volatility, too
Vikas Jain, head of India trading, fixed-income, currencies and commodities at Bank of America, said as foreign investment in Indian bonds heads toward the 10% weight on the JP Morgan bond index next year, the process of discretionary weighting changes would start to play out, creating a more complex trading environment.
Pull up your socks, ignore the fear and buy the stocks you want most: Sanjiv Bhasin
Sanjiv Bhasin advises strategic stock purchases amidst market fluctuations, emphasizing opportunities in largecap banks, commodity stocks, undervalued companies like Engineers India, and potential rural recovery themes through auto stocks like Escorts.
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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.
There will be two Fed rate cuts, in September and in Q4: Suresh Tantia, UBS
UBS's Suresh Tantia expects two rate cuts by the Fed in 2019, with a focus on the US 10-year bond yield falling below 4% by year-end. Favoring yen over Chinese yuan in the FX market amid predictions of rate cuts. Tantia says: " We do not think the story of the rate cuts have been delayed. It is going to happen sometime this year and our view is that most likely in the September meeting Fed will start to cut rates."
Best dynamic bond funds to invest in April 2024
Kotak Dynamic Bond Fund, one of the recommended schemes, has been in the third quartile in the last month. ICICI Prudential All Seasons Bond Fund has been in the second quartile in the last month.
In a ‘radical shift’, frontier markets go for policy changes
Central banks across key frontier economies including Kenya, Nigeria and Egypt have hiked policy rates significantly in recent months, while also implementing steps to liberalise markets - such as Nigeria's move to allow free trading in the naira.
FII flows, IPO action among 9 factors that will steer D-Street this week
"The market closed near its peak, with the Bank Nifty index emerging as a standout performer. Despite a rocky start, the PSU index demonstrated resilience, bouncing back from early declines. With few definitive signals this week, the market focus remains on the trajectory of the dollar index and US bond yields," Santosh Meena, Head of Research, Swastika Investmart, said.
US Treasury yields slip as market awaits GDP, Fed meet next week
U.S. Treasury yields slid on Wednesday as investors awaited the first read of fourth-quarter U.S. gross domestic product for 2023 and next week's meeting of the Federal Reserve that may hint at when policymakers begin a much-anticipated cut to interest rates.
SBI, BoB among PSBs rushing to issue bonds
State Bank of India is set to kick off domestic bond issuances for 2024 with the sale of an additional tier-1 (AT-1) bond worth up to ₹5,000 crore. Bidding for the issue would happen on Thursday, people aware of the development said.
10-year yield slips on index talks, weaker oil
Yield on the 10-year benchmark government bond dropped to a low of 7.19% on Tuesday, five basis points lower than its closing level at the end of last week. The benchmark bond closed at 7.19% on Tuesday. Falling government bond yields lead to lower borrowing costs across the economy.
We are tilting towards largecaps in our portfolios but not too worried about mid and smallcaps: Mahesh Patil
“Given the current sentiment, as we move into the next calendar year, we could see fresh allocations from FIIs and they could take a slightly positive view over there. The allocations could increase in the first half of next calendar year and with the strong domestic flows which are coming, we could probably see the markets getting into elections slightly on a positive note.”
Benchmark 10-year Treasury yields tumble to 3-week lows on refinancing relief
Bonds have sold off in recent months on concerns about quickly growing bond supply after the Treasury surprised markets in late July with a higher-than-expected borrowing estimates, and as investors price for the likelihood that the Federal Reserve will hold interest rates higher for longer as economic data remains strong
Debut of 50-year India bond lures insurers hungry for yields
The government plans to sell 100 billion rupees ($1.2 billion) of a 2073 bond on Friday, according to the Reserve Bank of India. Bajaj Allianz Life Insurance Co. Ltd. and HDFC Life Insurance Co. Ltd. anticipate demand for the paper will be strong as insurers try to lock in higher yields to take care of long-term commitments.
Can bond yields come back to normal levels post inflation data? Jayesh Mehta answers
And that is where we spiked up. I think it will still now track US yields tomorrow, it does not look like, but if hypothetically, if US will drop down, then definitely we will see some relief there on the bond side.
ETMarkets Smart Talk: FII sell-offs a tactical move; moderate correction of 3-4% could renew their interest, says Samir Bahl
“While the Nifty50 has reached a significant milestone at 20,200, it's not necessarily indicative of a definitive ceiling. Several global factors, such as the stronger-than-expected global growth and the recent decline in global average inflation, suggest that equity valuations are less likely to face immediate pressures.”
US Treasury yields flat to slightly higher; credit default swaps edge up
U.S. one-year credit default swaps widened to 22 bps on Wednesday, from 21 bps at Tuesday's close. The U.S. two-year Treasury yield was last up 1.4 basis points (bps) at 5.089%, while the 10-year yield inched lower to 4.552%
Very difficult for Indian bond yields to slide lower from here: Lakshmi Iyer
“Incrementally from here for yields to slide lower looks very difficult. It is being capped at maybe 7.20, 7.25 levels, largely because of the announcement of the index inclusion, which is still some time away. Near-term global headwinds are going to be weighing on the sentiments and could prevent a significant rally from the current levels.”
US 10-year yield slightly down after steep climb, but uptrend intact
The outlook for US yields remained tilted to the upside as the world's largest economy has performed better than expected despite aggressive tightening from the Federal Reserve over the last year and a half
This fund manager is afraid of an imminent credit event, holding 23% in cash. Here’s why
“More people are selling these bonds than buying them. So we could get trapped into a credit spiral and any kind of unforeseen event, a bankruptcy or a blow up in a hedge fund will turn everybody very cautious and people will run for exits and the crowded exit will lead to a lot of pain.”
Treasury selloff drives key 5-year yield to highest since 2008
The moves were relatively muted, given the recent volatility in the bond market. But they underscored the growing conviction that the Fed is likely to keep monetary policy tight to prevent the resilient economy from reigniting inflation.
How will bond yields move in the near term? Geoff Dennis answers
Also, there is a renewed worry about supply because, of course, of the very wide US budget deficit. So, I think it is a combination of those two.
Will mid and small caps continue their outperformance? A Balasubramanian answers
I think if you look at the factors that are driving the negative side, which continues to stay, at the same time the growth momentum in the US is not getting anywhere challenged.
NBFCs presenting attractive risk reward space to play in: Manish Gunwani
And if that is the scenario, obviously whatever Fed does, it kind of flows across the world so I think globally interest rates will be lower, one to two years lower.
What kind of fixed income options should you look at for investing? Dwijendra Srivastava answers
If you look at the core from about 5.8, 5.9, however you read it, it has come down to 5.1 to 5.2%. And a poor monsoon, if it plays out, will have an impact on the food prices and that could stop the bond rally.
Is there still scope for banks to raise interest rates for FDs? Lakshmi Iyer explains
So it looks like the case for being on an extended pause seems to get accentuated after the recent inflation numbers, both domestically as well as globally. So, we believe that coupled with the fact that there is a week on week supply and also one cannot wish away the fact that the IIP data though it is a lag indicator, it is slightly on the softer side, means that markets will sooner than later start discounting rate cuts.
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