Foreign ownership of Indian government bonds has accelerated through August as decision-influencing US data and Federal Reserve commentary point toward a rate cut later this month, but are not alarming by themselves to trigger a risk-off sentiment on Wall Street and dent financial assets in the world’s fastest-expanding major economy. From July 31 to August … Read more
Mumbai: The Reserve Bank of India’s (RBI) decision to revert to the multiple price method for auctions of sovereign bonds after three years signals confidence on the part of the Centre and its debt manager about New Delhi’s fiscal management, with the first such debt sale validating that trust. The multiple price auction method was … Read more
Mumbai: Government bond yields jumped to a two-month high on Tuesday as unexpectedly firm US economic data dampened hopes of the Federal Reserve reducing interest rates anytime soon, driving up American bond yields and reducing the appeal of Indian fixed-income assets. Yield on the 10-year benchmark government bond rose 7 basis points to settle at … Read more
Mumbai: Sovereign bond yields, the benchmark for pricing debt, may harden this week as several states have announced record-high borrowings ahead of the general election, surprising investors with a deluge of securities. 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 … Read more
Mumbai: Overnight indexed swaps (OIS), the principal financial market gauge for gauging which way interest rates are headed, show that traders have reduced the extent of rate cuts they expect from the Reserve Bank of India (RBI) this year, following a vigilant tone on inflation and liquidity by the central bank. A slower-than-expected inflation decline … Read more
Mumbai: With foreign portfolio investments in the Fully Accessible Route (FAR) for Indian government bonds continuing at a fast clip ahead of their June inclusion in a global index, international players now own a record one-fifth of one of the most highly liquid domestic sovereign papers. As of January 18, foreign funds owned 21.2%, or … Read more
