Bonds
RBI liquidity injection and its impact on the bond market
The Reserve Bank of India (RBI) plans to inject Rs 1 lakh crore through OMOs and conduct a USD INR swap auction worth $10bn to address liquidity shortages. This strategic move aims to stabilize the economy by mitigating the liquidity crunch and balancing rupee volatility with maintaining market liquidity.
India bond yields flat before US jobs data, 10-year yield crawls up
Indian government bond yields remained mostly flat, with the 10-year bond yield rising slightly as RBI did not include it in next week's bond purchase. Investors are awaiting U.S. economic data to assess the Federal Reserve's interest rate trajectory. The RBI plans significant bond purchases and liquidity measures to maintain banking system surplus.
India bond yields seen little changed with eyes on US data
Indian government bond yields are expected to remain largely unchanged on Friday as market participants await U.S. economic data. The data may influence the Federal Reserve's interest rate decisions. Local bond yields could see an increase due to the RBI's decision on bond purchases. Broad-based movement is likely next week after the U.S. jobs data release.
RBI announces Rs 1 lakh crore bond purchases, $10 billion swap to address liquidity deficit
The Reserve Bank of India announced measures to inject ₹1 lakh crore into the banking system and conduct a dollar/rupee swap auction of $10 billion. These steps aim to address the liquidity deficit and ensure the smooth transmission of lower policy rates amid expected tax outflows.
Indian bonds consolidate as 10-year bond yield tops 6.75%
Indian government bond yields consolidated after the 10-year yield hit a six-week high, with cautious sentiment amid heavy debt supply. States sold bonds with higher cutoff yields, indicating weak demand. Traders expect states to raise around 1.35 trillion rupees by March-end, while demand for longer-duration bonds has eased due to uncertainty around RBI bond purchases.
IIFL Finance to reissue 2028 dollar bonds: Report
India's IIFL Finance plans to raise up to $150 million by reissuing its 8.75% 2028 dollar-denominated bonds, two sources aware of the matter said on Tuesday.
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IMF suggests corporate bond inclusion in RBI’s crisis-related liquidity toolkit
IMF recommendations: The IMF recommended that the RBI expand its crisis-time liquidity measures by accepting corporate bonds as collateral. This move could enhance liquidity support beyond government securities, benefiting non-bank financial institutions and strengthening financial stability during periods of market distress.
Greenko eyes $1 billion offshore bond to refinance 2025 maturity
Greenko Group is working to raise $1 billion through an offshore bond sale to refinance debt maturing in May 2025. The renewable energy firm continues to expand pumped storage and integrated renewable energy projects across India. Promoters are also seeking an $825 million loan to fund a potential buyout of Orix Corp’s 20% stake.
Sebi launches centralised database portal for corporate bonds
Sebi has launched Bond Central, a centralised database portal for corporate bonds, created by the OBPP Association with support from Market Infrastructure Institutions. The portal aims to enhance transparency and informed decision-making by providing detailed risk assessments, corporate bond documents, and comparisons with Government Securities. It offers a unified view of corporate bonds, accessible free of cost to the public.
Varanasi Aurangabad NH-2 Tollway raises $316.3m in debut dollar bond
Varanasi Aurangabad NH Tollway raises $316.3 million in its debut international bond issuance with a 5.900% coupon rate. The bonds saw strong demand, attracting 144 investors and raising over $3.3 billion in orders. This marks the first time an Indian road concession has secured US dollar-denominated debt and an investment-grade rating.
India's bond forwards may see strong demand from insurers, investors say
India's soon-to-be-launched bond forwards could see strong demand from insurers as these instruments offer the option of taking delivery of underlying securities at the end of a contract, bankers and investors said on Tuesday.
HSBC eyes $1 billion in perpetual additional Tier 1 dollar bond issue: Report
The term sheet did not outline the deal size, but the source said the bank was aiming to raise $1 billion. The source could not be named discussing confidential information.
Fed officials weighed slowing or pausing bond drawdown last month
Federal Reserve officials, concerned about the impact of debt ceiling uncertainty on market liquidity, are considering slowing or pausing their balance sheet runoff. They are monitoring closely to determine an appropriate end for quantitative tightening, given potential reserve declines following debt resolution.
Hard bargaining at RBI OMO lifts yields
The RBI also conducted an overnight variable rate repo (VRR) auction for ₹2.75 lakh crore, where RBI received bids for ₹2.35 lakh crore. System liquidity stood at a deficit of ₹2.07 lakh crore on Wednesday, and has been in a daily average deficit of ₹1.28 lakh crore in February.
RBI plans Rs 75,000-crore VRR auction on Friday
Besides a ₹1.5 lakh crore liquidity boost late January, the RBI has provided support via screen based OMOs of ₹59,000 crore last month.
State-run fin companies line up Rs 20,000 cr bond issue despite rising yields
REC raised up to ₹6,000 crore through two bond issuances on Tuesday, while India Infrastructure Finance is looking to raise ₹2,000 crore via bonds maturing in March 2028. Similarly, the National Bank for Agriculture and Rural Development (Nabard) is looking to raise ₹5,000 crore on Wednesday.
