Latest news with #AvnishJain
Time of India
3 days ago
- Business
- Time of India
India bonds steady ahead of New Delhi's debt sale
Indian government bonds were rangebound on Thursday, with investors awaiting New Delhi's debt auction for more clues into the yield trajectory. The benchmark 10-year bond yield was at 6.4826% as of 10:00 a.m. IST, compared with Wednesday's close of 6.4811%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bedridden for 2 years, please help my husband walk again! Donate For Health Donate Now Undo New Delhi is set to raise 280 billion rupees ($3.20 billion) through a debt sale, which includes a 5-year bond and a new 30-year security. Bonds Corner Powered By Fixed Income Outlook: Sideways rates offer opportunities in short-to medium-term debt funds India's fixed income market remains steady despite global uncertainty. With inflation below the RBI's target and yields expected to stay in a narrow range, Canara Robeco's Avnish Jain advises focusing on short- to medium-term debt funds for better risk-adjusted returns, while keeping selective long-duration exposure for potential policy easing gains. Is the rally over in long-duration bonds? Is investing in T-bills via SIP a smart move compared to FDs? India's bond market signals extended rate pause despite low inflation RBI allows non-residents to invest rupee surplus in vostro accounts in G-secs Browse all Bonds News with The auction is being seen as a key test of demand for longer-term notes, traders said. "Pre-policy, we had seen a lot of participation by banks in the longer end. If that repeats today, then we will see government securities sustaining levels," a fund manager at an AMC said. Live Events "Today's auction will be a deciding factor for volatility or recovery of bonds." Traders are also likely to keep positions light ahead of a long weekend. The local debt market shut on Friday for Independence Day . Any dips will trigger opportunistic buying during the day, traders said. The Reserve Bank of India will hold an eight-day variable rate reverse repo auction to withdraw two trillion rupees from the banking system later in the day. The banking system's liquidity surplus continues to remain above 1% of deposits at 2.9 trillion rupees as on Wednesday. RATES India's overnight index swap (OIS) rates continued to see receiving, with traders expecting at least one rate cut in 2025. Meanwhile, falling U.S. Treasury yields and rising wagers for a September rate cut by the Federal Reserve are aiding the sentiment for longer-duration rates. The one-year OIS rate INR1YMIBROIS=CC fell 1 basis point to 5.4950% and the two-year OIS rate was steady at 5.44%. The liquid five-year OIS rate dipped more than 1 bp to 5.6325%.
Time of India
4 days ago
- Business
- Time of India
Fixed Income Outlook: Sideways rates offer opportunities in short-to medium-term debt funds
India's fixed income market remains resilient despite global headwinds, with stable macroeconomic indicators supporting investor sentiment. According to Avnish Jain, Head – Fixed Income, Canara Robeco Asset Management Company , recent global trade tensions and the imposition of a 25% tariff by the US have added uncertainty to the global economic landscape. However, India continues to stand out, with inflation undershooting forecasts in the first quarter and remaining well below the Reserve Bank of India's (RBI) 4% target. Bonds Corner Powered By Fixed Income Outlook: Sideways rates offer opportunities in short-to medium-term debt funds India's fixed income market remains steady despite global uncertainty. With inflation below the RBI's target and yields expected to stay in a narrow range, Canara Robeco's Avnish Jain advises focusing on short- to medium-term debt funds for better risk-adjusted returns, while keeping selective long-duration exposure for potential policy easing gains. Is the rally over in long-duration bonds? Is investing in T-bills via SIP a smart move compared to FDs? India's bond market signals extended rate pause despite low inflation RBI allows non-residents to invest rupee surplus in vostro accounts in G-secs Browse all Bonds News with Jain noted that the RBI's recent shift to a neutral stance suggests a pause in the current rate-cut cycle. Nevertheless, 'if the undershoot of inflation continues for the next one or two quarters, there is an expectation that the RBI may deliver one more 25 bps rate cut by December,' he said. In terms of yields, Jain expects the 10-year government bond benchmark to trade in the 6.30%–6.45% range in the near term. Live Events Market movements will likely be driven by a combination of global and domestic factors—international crude oil prices, US Treasury yields, and geopolitical developments on one hand, and India's inflation trajectory and growth data on the other. Importantly, he does not foresee any major sell-offs in the bond market, citing a healthy demand-supply balance and continued appetite for government securities from institutional investors. Given this backdrop, Jain believes that duration strategies may not deliver significant returns in a largely sideways interest rate environment. Instead, he recommends that investors focus on short- to medium-term fixed income categories such as corporate bond funds, short duration funds, and banking & PSU debt funds , which are positioned to offer better risk-adjusted returns in the current scenario. For long-term investors, maintaining selective exposure to duration could still be valuable—particularly if an additional policy easing materialises later this year. Such a move could provide capital gains potential while retaining the carry benefits of high-quality long-duration instruments. Overall, Jain's outlook suggests a balanced approach: tactically positioning portfolios to benefit from steady yields in the short term, while keeping optionality open for potential gains if monetary policy turns more accommodative. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
