BOND
Bond traders waver as Trump questions US government debt figures
Bond investors were unsettled by President Trump's remarks about investigating Treasury debt payments for fraud. Trump's statement hints at a potential overhaul of the federal government, possibly leading to a reduction in the national debt. However, experts believe it is unlikely to disrupt upcoming debt payments. Benchmark 10-year Treasury yields rose slightly with upcoming Treasury auctions.
RBI doubles bond purchases to Rs 40,000 crore
Market participants are expecting additional liquidity support via variable rate repo (VRR) auctions and open market operations (OMO) purchases, both planned and unplanned, along with foreign exchange swaps, as the RBI's forward book is heavy with large near-term maturity, economists said.
From pause to play: RBI’s first rate cut in 5 years. What it means for your fixed income portfolio
The RBI’s 25 bps rate cut to 6.25% signals the start of a shallow easing cycle. Longer-duration bonds, overseas bonds, and InVITs stand to gain. Inflation is expected to moderate, but geopolitical risks persist. Investors should diversify, focus on quality, and actively manage duration to navigate volatility.
Forward contracts in G-secs need ease of trading to take off
The RBI after its Monetary Policy Committee meeting said on Friday that the central bank would include forward contracts in government securities so that long-term investors such as insurance funds can manage their interest rate risk. The RBI had released draft rules for bond forwards for the first time in December 2023.
Indian state-run firms line up $2 bln bond sales as central bank cuts interest rate
Indian state-run companies are set to borrow nearly $2 billion via the bond market early next week after the central bank cut interest rates for the first time in nearly five years.
US bond market lukewarm on Bessent's 10-year yield pledge
Treasury Secretary Scott Bessent's efforts to contain 10-year Treasury yields face skepticism amid expected inflationary pressures from trade policies and rising federal deficits. Experts suggest that market forces, rather than government interventions, will largely determine long-term yield movements, highlighting the challenges in achieving sustainable lower borrowing costs.
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Bonds yields fall on rising bets RBI will cut rates
Yields inched up at open and peaked at 6.7100% after a bigger-than-expected government borrowing target for next fiscal year.
Ease investment curbs to deepen corporate bond market
Currently, with 97% of issuances concentrated in top-rated bonds, smaller players are effectively shut out. As a result, India's corporate bond market is under-capitalised and as a percentage of GDP is only 18%, compared with 80% in South Korea and 36% in China.
Indian G-Sec bonds debut Bloomberg EM Index today
Indian government bonds (FAR bonds) join Bloomberg's Emerging Markets Local Currency Government Indices from January 31, with a phased 10-month inclusion. This move is expected to boost foreign investor participation, following a similar inclusion by JP Morgan in 2024.
FAR G-Secs fare better in Jan, but yields in US, dollar cloud outlook
The inflows which had peaked at over ₹22,000 crore in August have tapered due to escalating US yields and a depreciating rupee making Indian government bonds less attractive to foreign portfolio investors, fixed income experts said.
RBI purchases bonds via OMO, while managing market sentiments
The Reserve Bank of India initiated a Rs 20,000 crore liquidity infusion through an OMO purchase, accepting liquid and illiquid bonds to manage market sentiments. The operation involved purchasing papers at both premium and discount rates. A second liquidity measure and another OMO auction are scheduled. System liquidity has been in deficit since mid-December 2024.
India's 10-year bond yield glued to 6.68%; bond purchase outcome eyed
Indian government bond yields dipped slightly as investors focus on the Reserve Bank of India's first debt purchase under its massive liquidity package. The 10-year bond yield settled at 6.6814%. RBI plans to inject 1.5 trillion rupees into the banking system over three weeks, potentially leading to a rate cut.
US bond investors seek safety amid uncertainty about Trump policies, Fed outlook
U.S. bond investors stay defensive amid uncertainty about the Trump administration's policies and a likely pause in Fed rate cuts. Portfolio managers avoid long-dated Treasuries and adopt a neutral stance relative to benchmarks. The Fed's cautious approach, the strong U.S. economy, and rising inflation concerns drive this strategy.
Yields on 10-year bonds remain flat at 6.69% after rising in early trade
Yields on the 10-year benchmark sovereign bond softened four basis points to 6.64% Tuesday in the early hours of trading, responding to the Reserve Bank of India (RBI) measures on Monday to ease system liquidity.
Latest RBI liquidity measures to soften 10-year yields further
Yields on the 10-year benchmark government security dropped to its lowest levels in almost three years to 6.64% early on Monday due to increasing odds of a rate cut ahead of the monetary policy meeting on February 7. On a closing basis, yields on the 10-year benchmark government security eased four basis points to 6.68%, from its previous close of 6.72%
Bullish momentum sends India 10-year bond yield briefly to 3-year low
Indian government bond yields plunged on Monday, with the 10-year benchmark yield briefly sliding to a near three-year low after the central bank unexpectedly snapped up a large quantum of bonds.
RBI's bond purchases raise bets of February rate cut, say investors
The Reserve Bank of India's unexpected purchase of government bonds pushed down bond yields on Monday and raised bets for a cut in interest rates in February, investors said.
RBI net buys over Rs 10,000 crore gilts in secondary market
Data released by RBI shows purchases were made across three sessions. The central bank bought ₹2,570 crore worth of government bonds on January 15, ₹4,480 crore on January 16, and ₹3,125 crore on January 17, the weekly statistical supplement (WSS) shows.
Bloomberg says no process underway for India bond inclusion in global index, CNBC reports
A spokesperson from Bloomberg Index Services denied speculation that the inclusion of Indian government bonds in the company's Global Aggregate Index is underway, CNBC-TV18 reported on Wednesday.
America first stalls bond issuance bonanza in EMs
While a recent surge in US bond yields has abated for now, investors fear the upward moves will resume after President-elect Donald Trump takes office on Monday, given his support for trade-tariff hikes and mass deportations, policies that are considered inflationary.
How bond vigilantes could check Trump's power
The U.S. debt-to-GDP ratio is pushing 100%, double the level in Clinton's time. Left unchecked, by 2027 it's projected to exceed the records set after World War II, when the government borrowed heavily to fund the war effort.
RBI floating rate bonds offer a low-risk, high-return option
These bonds, issued by the Reserve Bank of India on behalf of the government, earn more than 10-year benchmark government bonds and fixed deposits, distributors said.
Tata Capital raises $400 million via bonds
The bonds were sold to investors at a final price of 92 basis points above the three-year US treasury, which was trading at 4.47% on Tuesday, meaning an effective rate of 5.39% for the lender, people familiar with the issue said.
Vedanta Resources to raise $1-billion in dual tranche bonds
Final price guidance for the 5.5-year tranche has been set at 9.475%, while the 8.25-year tranche is at 9.850%, which is tight pricing given the current market environment, the source added. The five-year US treasury currently yields 4.6%.
Three companies line up $1-billion bond issues overseas
Tata Group's non-banking arm Tata Capital ($300 million), Prem Watsa-backed IIFL Finance ($300 million) and Anil Agarwal's Vedanta Resources ($500 million) are ready to hit the market, as they seek to stay away from the market in the initial weeks of the Trump presidency, these people said. The first issue is likely to happen as early as Monday.
Beleaguered US bond market looks to job report for reprieve
While bearish wagers have been growing, the steep rise in yields since mid-September may mean that strong data will hurt the market less than weak data will help it, some investors and strategists say.
Vedanta seeks $450 million to repay top-performing junk bonds
Vedanta's notes maturing in April 2026 were among the top performers in India's high-yield sector last year, delivering an 80% return as Agarwal worked to reduce the group's debt. Junk bonds offered the highest returns in 2024 for dollar-denominated issuances by Indian companies.
People's Bank of China says it will temporarily halt buying of government bonds
China’s central bank will temporarily halt purchasing government bonds due to undersupply, following record-low benchmark yields this month. The decision comes amid high demand driven by bets on policy easing in a sluggish economy. The PBOC's actions aim to manage liquidity and yield directions with plans to resume buying based on market conditions.
US companies rush to bond market in fundraising flurry
U.S. companies are actively engaging in the corporate bond markets to mitigate potential rising funding costs due to an expected increase in Treasury yields. With 22 companies offering new bonds, the bond issuance is projected to reach nearly $65 billion this week. This strategic financial move follows a robust borrowing trend observed in 2024.
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