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Time of India
17 hours ago
- Business
- Time of India
India bonds inch up before state debt supply, US rate decision
Indian government bonds edged higher in early deals on Tuesday after a two-day selloff, while volumes remained muted ahead of the state debt supply and the U.S. rate decision due a day later. The yield on the benchmark 10-year bond was at 6.3631% at 10:25 a.m. IST, compared with the previous close of 6.3700%. Explore courses from Top Institutes in Please select course: Select a Course Category Bond yields move inversely to prices. Bonds Corner Powered By India bonds inch up before state debt supply, US rate decision Indian government bonds saw a slight increase in early trading on Tuesday, recovering from a two-day selloff, though trading volume remained low. Investors are awaiting state debt supply details and the U.S. Federal Reserve's rate decision. The focus is also on RBI policy decisions and U.S. Fed Chair Jerome Powell's commentary for cues on the domestic policy easing cycle. Retail investors are waking up to bonds—here's why it matters, says Vineet Agarwal Fixed income isn't just for retirees, it belongs in every portfolio: Jiraaf's Vineet Agarwal How Bond duration impacts return in a falling rate regime, Gautam Kaul explains Corporate bonds meet arbitrage: a smarter, tax-efficient play for fixed income investors Browse all Bonds News with Traders said the benchmark bond yield was unable to break past a key technical upside level, so there is some reversal in trend. Investors took a break from selling, which was triggered by falling bets of an immediate rate cut following hawkish commentary from the Reserve Bank of India Governor Sanjay Malhotra. Live Events On Friday, Malhotra said that the monetary policy will place greater emphasis on the outlook for growth and inflation, rather than their current levels. "Traders are mostly on the sidelines till the RBI policy decision as there is no incentive for taking positions," a trader at a state-run bank said. "Focus is on U.S. Fed Chair Jerome Powell's commentary, which could give more cues on domestic policy easing cycle for FY25." The Federal Reserve is widely expected to keep interest rates unchanged on Wednesday. Meanwhile, Indian states are aiming to raise 300 billion rupees ($3.46 billion) via bond auctions later in the day, slightly exceeding the scheduled amount. RATES India's overnight index swap (OIS) rates saw receiving pressure in early trades, as the 10-year bond yield failed to breach key technical level, spurring some buying. The one-year rate dropped 2 basis points to 5.52%, while the two-year OIS rate fell 2 basis points to 5.50%. The liquid five-year OIS rate was down 1 basis point at 5.73%.
Time of India
22-07-2025
- Business
- Time of India
Japan bonds fall on coalition's poll defeat as market reopens after holiday
Japanese government bonds fell in early trade on Tuesday, pushing up yields, as investors returning from a long holiday weekend digested the ruling coalition's recent election defeat. The yield on 10-year JGBs added 1.5 basis points (bps) to 1.535%, rising for the first time in four sessions. The benchmark 10-year JGB futures lost 0.09 yen to 138.26, threatening to end a three-session advance. Bonds Corner Powered By Japan bonds fall on coalition's poll defeat as market reopens after holiday Japanese government bonds experienced a decline on Tuesday, leading to increased yields. This occurred as investors reacted to the ruling coalition's recent election defeat. The yield on 10-year JGBs rose, marking the first increase in four sessions. Japan's ruling coalition lost control of the upper house in Sunday's election. Prime Minister Shigeru Ishiba faces pressure amid economic concerns. RBI accepts Rs 17,274 crore in bond switch auction, aims to manage fiscal pressure India's investment trusts to expand debt fundraising as yields drop, analysts say Corporate bonds in India: From institutional stronghold to broader participation India bonds advance as traders build positions for another rate cut Browse all Bonds News with Other cash bond tenors had yet to trade as of 0019 GMT. Yields move inversely to bond prices. Live Events Japan's ruling coalition lost control of the upper house in Sunday's election, a widely anticipated setback that further eroded the authority of Prime Minister Shigeru Ishiba , who lost his majority in the more powerful lower house in October. However, Ishiba has vowed to stay on, warning against creating a political vacuum as he faces an August 1 deadline for a trade deal with the United States . While the ballot does not directly decide the fate of Ishiba's administration, it heaps pressure on the embattled leader and could either imply policy paralysis or a bigger fiscal deficit , depending on the ruling party's next moves and the opposition's strength. Japan has the largest debt burden in the developed world at about 250% of its GDP. The 10-year yield pushed to the highest since October 2008 last Tuesday after opinion polls increasingly pointed to gains for opposition parties, which support debt-funded consumption tax cuts to alleviate the burden of the rising cost of living. The 30-year yield shot to an all-time high of 3.2%.
Time of India
16-07-2025
- Business
- Time of India
India's bond market grows at 25% CAGR in 10 years: Jiraaf data shows surge in private sector issuances
India's bond market is witnessing remarkable growth, with data from the Jiraaf Bond Analyser highlighting an accelerating trend over the past decade. Jiraaf, an online bond investment platform, provides critical insights into this evolving asset class, which is now increasingly favored by both institutional and retail investors . Once largely dominated by government and PSU issuances, India's bond market is undergoing a significant transformation. Bonds Corner Powered By India's bond market grows at 25% CAGR in 10 years: Jiraaf data shows surge in private sector issuances India's bond market is experiencing substantial growth, driven by increased private sector involvement and investor demand for stable returns. Jiraaf Bond Analyser data reveals a decade-long expansion, accelerating post-2020. In 2024, listed bond issuances surpassed ₹9.5 lakh crore. Non-PSU issuances exceeded PSU issuances for the first time, indicating improved private sector credit profiles and investor confidence. India bonds steady as traders await fresh cues India bonds steady as traders await fresh cues Indonesia launches 5-year US dollar Islamic bond, 10-year green sukuk, term sheet shows India's long-term bonds decline before debt sale, Treasury moves pinch Browse all Bonds News with Driven by rising private sector participation and increasing investor appetite for stable, fixed-income products, the market is expanding at an unprecedented pace. Data from the Jiraaf Bond Analyser—part of the online bond investment platform Jiraaf, founded by Saurav Ghosh and Vineet Agrawal—shows that India's debt capital market is no longer just an institutional playground, but an evolving opportunity for retail investors as well. Live Events A decade of growth, with acceleration post-2020 Over the last decade, India's bond market has expanded at a CAGR of around 25%, with growth accelerating over the past four years as both corporate and public sector issuers increasingly turned to debt markets to meet their funding needs. In 2024 alone, listed bond issuances crossed Rs 9.5 lakh crore (US$110 billion), signaling growing depth and liquidity in India's debt markets. A key inflection point was the post-COVID era, particularly after 2021. The global search for yield—combined with abundant liquidity and ultra-low interest rates—encouraged both institutional and high-net-worth investors to seek alternative, stable investment avenues. Indian corporates, especially in the private sector, capitalized on this shift to diversify their funding sources. Private players overtake PSUs in bond issuances What's particularly noteworthy is the changing market composition. Traditionally seen as a space dominated by Public Sector Undertakings (PSUs), India's bond market is now seeing a surge in private sector activity. According to Jiraaf data, non-PSU issuances crossed Rs 4.9 lakh crore (US$56 billion) in 2024, surpassing PSU issuances for the first time. This shift reflects two important trends: Improved credit profiles of private corporates post-deleveraging and operational efficiency improvements. Increased confidence among institutional and retail investors in private sector issuers, driven by regulatory reforms and better corporate governance standards. The move also underscores a structural shift: as India's economy diversifies and formalises, more companies outside the public sector are now using debt markets for growth capital, refinancing, and working capital needs. Lessons from the IL&FS crisis and post-pandemic reforms The IL&FS crisis of 2018 was a watershed moment, exposing over-reliance on concentrated sources of funding like banks and NBFCs. This led to greater awareness around capital diversification. Regulatory reforms post-crisis and proactive steps by the Reserve Bank of India (RBI) have made bond markets more accessible and transparent. Bonds 101: Why retail investors should care For individual investors, bonds present a compelling alternative to traditional instruments like fixed deposits or equities. Simply put, bonds are fixed-income instruments where governments or corporations borrow money from investors, promising regular interest payments and principal repayment at maturity. Unlike equities, bonds offer: Predictable income streams through periodic interest payments. Capital preservation due to predefined maturity. Lower risk compared to equities, while delivering competitive returns. Portfolio diversification, acting as a stabilising force during market volatility. With platforms like Jiraaf simplifying access to bonds, even retail investors can now participate in what was earlier a domain reserved for large institutions. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
09-07-2025
- Business
- Time of India
Adani Enterprises' public debt issue oversubscribed on launch day, bankers say
Indian billionaire Gautam Adani 's flagship firm saw strong demand for its second public bond issue in less than a year, with the offering oversubscribed on launch day, three merchant bankers said on Wednesday. Adani Enterprises plans to raise up to 10 billion rupees ($116.7 million) through the sale of two-, three- and five-year bonds. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like El sencillo hábito matutino para un vientre más plano después de los 50 Show Now Insider Undo The issue opened for subscription earlier in the day and received bids worth 15 billion rupees as of 5 p.m. IST, the bankers said. Bonds Corner Powered By IndianOil-Adani Gas plans $161 million exchangeable-bond sale IndianOil-Adani Gas Pvt. is planning to raise as much as 13.78 billion rupees ($161 million) from the sale of exchangeable bonds, according to people familiar with the matter, in what could be one of the largest such deals in India this year. Corporate bonds form just 10–15% of India Inc's debt—well below global peers, says Sneha Pandey India bonds dip on RBI liquidity move, weak US Treasuries Euro zone bond yields at six-week highs, bond auctions in focus Lodha Developers raises Rs 300 cr through debentures to fund biz Browse all Bonds News with It will now close on Friday, ahead of its earlier schedule of July 22, Adani Enterprises said in a public notice. "We think the company will tap this market on a regular basis considering the strong response," one of the bankers said. Live Events They are directly involved in the issue and requested anonymity as they are not authorised to speak to the media. Adani Enterprises will pay an annual coupon of between 8.95% and 9.30%, they said. Corporates led demand for the issue, followed by high net-worth individuals and retail investors, they added. This is India's biggest public issue in 14 months and comes after a subdued first quarter where firms were able to raise only about 15 billion rupees. Nuvama Wealth Management , Trust Investment Advisors and Tip Sons Consultancy Services are the lead managers for the issue. Adani Enterprises did not immediately respond to a Reuters request for comment. Last September, the company raised 8 billion rupees in its debut public issue, offering yields 30-60 basis points higher across tenors. Adani Enterprises was able to garner over 7 billion rupees in bids on the first day until 5:00 p.m. IST last year. ($1 = 85.6800 Indian rupees)
Time of India
27-06-2025
- Business
- Time of India
Indian bond yields inch up ahead of large debt supply
Indian government bond yields were slightly higher in early deals on Friday, ahead of debt supply due later in the day, with the major focus staying on the demand for the benchmark 2035 bond . The yield on the benchmark 10-year note was at 6.2845% as of 10:00 a.m. IST, compared with the previous close of 6.2763%. "We can see a lot of short positions, over 100 billion rupees in the new benchmark," a trader with a private bank said. "The auction should sail through as traders would look to square these positions." Bonds Corner Powered By Indian bond yields inch up ahead of large debt supply Indian government bond yields edged up early Friday, ahead of a debt supply auction, with focus on the benchmark 2035 bond demand. New Delhi aims to raise 360 billion rupees through bonds. State-run banks' strong bond purchases on Thursday supported the market. LIC Mutual Fund trims long-term bond holdings as rate-cut rally ends BoI to raise Rs 20,000 cr via infra bonds this fiscal Indian bonds flat as sell-off stalls after pricing in RBI liquidity plan T-bill, money market rates rise on VRRR plan Browse all Bonds News with New Delhi is set to raise 360 billion rupees ($4.21 billion) through bonds, including 300 billion rupees of the benchmark note, later in the day. The auction will likely boost trading volumes in this paper as the outstanding would reach 900 billion rupees. Bond yields slipped briefly at the open, reflecting strong demand from state-run banks that bought bonds worth 106 billion rupees on a net basis on Thursday. It was their biggest single-session purchase in seven weeks, data from clearing house showed. Live Events The Reserve Bank of India will also conduct a seven-day variable rate reverse repo (VRRR) auction for 1 trillion rupees during the day, which the traders will keenly watch to gauge its impact on the banking system's liquidity surplus. Earlier this month, Reuters reported the RBI could start conducting these auctions as and when required and that it had sought market feedback on aligning the call money rate more closely with the repo rate, which would effectively tweak liquidity levels. The average daily liquidity surplus stood at 2.74 trillion rupees this month. RATES India's overnight index swap rates were a tad higher, in line with government bonds. The one-year OIS rate was flat at 5.54%, the two-year OIS rate was up over 1 basis point at 5.51% and the liquid five-year was up 1 basis point at 5.69%.
