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Time of India
4 days ago
- Business
- Time of India
RBI accepts 95% of bond buyback ahead of monetary policy review
Mumbai: The Reserve Bank of India (RBI) Thursday accepted 95% of the total amount notified in this fiscal year's first bond buyback a day ahead of the bi-monthly monetary policy review, although the bids received were not as large as those in similar exercises conducted in January this year. The low enthusiasm comes in the run up to the monetary policy committee (MPC) meeting set on Friday, as the markets didn't seem too keen to sell short-term debt on expectations of profit booking in these assets in the future, money market traders said. Against a notified amount of ₹25,000 crore, the RBI received bids worth ₹27,256 crore, of which, the central bank accepted offers of ₹23,855 crore, data showed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Migrate with ease from Window 10 to Window 11 with Lenovo Lenovo Learn More Undo "The policy on Friday may alter prices, especially for short term bonds. Since this buyback auction was so close to the MPC, the market did not seem very enthusiastic to sell," said Gopal Tripathi, head of treasury, Jana Small Finance Bank . Buybacks are a way for the government to pay off debt for next fiscal year to reduce its gross borrowing. Bond buybacks also allow the RBI to infuse durable liquidity in the system. Bonds Corner Powered By India plans increased bond buybacks and switches to secure sovereign rating upgrades India is likely to increase bond buybacks and switches to longer maturities this fiscal year to lower its combined fiscal deficit, aiming for sovereign rating upgrades that have remained unchanged for nearly two decades. Economists suggest that maintaining the fiscal gap below 7% of GDP is crucial for rating agencies to consider an upgrade, with the government budgeting ₹2. India bond traders suggest borrowing tweak to bring down long-term yields, sources say India's favoured 5-year bond trade loses steam with rate cuts priced in, fund managers say Vedanta raises Rs 5,000 cr through NCDs India long duration bonds rise on bets of dovish RBI policy Browse all Bonds News with
Economic Times
09-05-2025
- Business
- Economic Times
Indian bond yields climb as traders panic sell on widening border conflict
Indian government bond yields increased early Friday. This happened as traders reduced positions after attacks along India's western border. The benchmark 10-year yield reached 6.4303%. Factors like the India-Pakistan conflict and rising U.S. yields contributed. The Indian rupee, stocks, and bonds also experienced a decline. New Delhi plans to borrow 320 billion rupees via bonds. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads RATES Indian government bond yields rose in early trade on Friday as traders nervously trimmed positions after Pakistani forces launched multiple attacks along India's western benchmark 10-year yield was at 6.4303% as of 10:40 a.m. IST, compared with previous close of 6.3976%.It hit a high of 6.4416% in initial trading."There's the India-Pakistan conflict situation, U.S. yields are higher and crude oil has also gone up, so bonds will remain subdued," said Gopal Tripathi, head of treasury and capital markets at Jana Small Finance Bank "We may see 10 basis points upward move during the day, since 6.40% levels were broken."The Indian rupee, stocks and bonds fell after Pakistan's armed forces launched several attacks using drones and other munitions along India's western border on Thursday night and early New Delhi is set to borrow 320 billion rupees ($3.7 billion) via bonds maturing in November 2039 and April 2065 later in the jitters around the conflict will likely impact the demand for the auction, after the cutoff on the underwriting fee was unusually debt market is closed on Monday due to a local holiday, which is further making traders wary and they may avoid taking positions before a long Reserve Bank of India is set to buy bonds worth 250 billion rupees in the day, which is likely to provide some comfort to the overnight index swap rates rose early Friday, as investors leaned towards paying positions amid escalating India-Pakistan conflict that is clouding prospects for rate cuts, traders one-year OIS rate was up 2 basis points at 5.68%, while the two-year OIS rate was up 3 bps at 5.58%, and the most liquid five-year OIS rate was up 3 bps at 5.71%. ($1 = 85.7700 Indian rupees)
Time of India
09-05-2025
- Business
- Time of India
Indian bond yields climb as traders panic sell on widening border conflict
Indian government bond yields rose in early trade on Friday as traders nervously trimmed positions after Pakistani forces launched multiple attacks along India's western border. The benchmark 10-year yield was at 6.4303% as of 10:40 a.m. IST, compared with previous close of 6.3976%. It hit a high of 6.4416% in initial trading. Bonds Corner Powered By Indian bond yields climb as traders panic sell on widening border conflict Indian government bond yields increased early Friday. This happened as traders reduced positions after attacks along India's western border. The benchmark 10-year yield reached 6.4303%. Factors like the India-Pakistan conflict and rising U.S. yields contributed. The Indian rupee, stocks, and bonds also experienced a decline. New Delhi plans to borrow 320 billion rupees via bonds. Indian insurers urge regulator's easing of counterparty exposure in new bond forwards market RBI eases FPI rules on corporate bonds to boost foreign inflows Chinese companies line up to sell 'innovation bonds', capitalising on Beijing's technology push Not just for retirees: Why Gen Z should embrace bonds early in their journey Browse all Bonds News with "There's the India-Pakistan conflict situation, U.S. yields are higher and crude oil has also gone up, so bonds will remain subdued," said Gopal Tripathi, head of treasury and capital markets at Jana Small Finance Bank . "We may see 10 basis points upward move during the day, since 6.40% levels were broken." Live Events The Indian rupee, stocks and bonds fell after Pakistan's armed forces launched several attacks using drones and other munitions along India's western border on Thursday night and early Friday. Meanwhile, New Delhi is set to borrow 320 billion rupees ($3.7 billion) via bonds maturing in November 2039 and April 2065 later in the day. The jitters around the conflict will likely impact the demand for the auction, after the cutoff on the underwriting fee was unusually high. The debt market is closed on Monday due to a local holiday, which is further making traders wary and they may avoid taking positions before a long weekend. The Reserve Bank of India is set to buy bonds worth 250 billion rupees in the day, which is likely to provide some comfort to the traders. RATES India's overnight index swap rates rose early Friday, as investors leaned towards paying positions amid escalating India-Pakistan conflict that is clouding prospects for rate cuts, traders said. The one-year OIS rate was up 2 basis points at 5.68%, while the two-year OIS rate was up 3 bps at 5.58%, and the most liquid five-year OIS rate was up 3 bps at 5.71%. ($1 = 85.7700 Indian rupees)
Time of India
30-04-2025
- Business
- Time of India
Bond Market sees demand surge as RBI's Rs 1.25 Lakh crore OMO plan spurs premium pricing
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The central bank's bond purchases through open market operations (OMO) on Tuesday saw strong demand, with banks and primary dealers offering bonds double the notified amount to cash in on higher prices. Prices for the bonds were better than in previous auctions and were at a premium from the market, treasury heads offered for this OMO were worth Rs 39,218 crore, versus the notified amount of Rs 20,000 crore. Bonds maturing in the next four to six years saw maximum demand, Reserve Bank of India ( RBI ) data prices of bonds were at a premium from the market and are a factor of demand-supply dynamics. When you don't know how much the RBI is going to buy, then people are willing to sell at a discount also,' said Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank . 'But now the RBI has announced an OMO calendar for May, people are selling at market prices or at slightly better than market prices," he RBI announced on Monday that it will purchase Rs 1.25 lakh crore government bonds via OMO purchases in four tranches spread across May. This announcement drove down yields of government bonds by five basis points, which closed at 6.35%, CCIL data showed.'Now with so much of OMO supply, dealers have sold from their held-to-maturity (HTM) books and now want to sell at a premium from the market prices. This sale of bonds also creates demand for government bonds in the weekly auction,' said Gopal Tripathi, head of treasury at Jana Small Finance Bank This Friday, on May 2, the RBI will also auction the new 10 year paper for a quantum of Rs 30,000 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Mint
30-04-2025
- Business
- Mint
Indian Insurers Plan a $41 Billion Trade Switch to Bond Forwards
(Bloomberg) -- Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. India's insurance companies are ready to embrace bond forwards agreements that start trading on Friday, the latest step to enhance the liquidity and sophistication of the nation's $1.3 trillion government debt market. Insurance companies are in talks with the authorities to convert about 3.5 trillion rupees ($41 billion) worth of rates derivative contracts into bond forwards, people familiar with the matter said. Such contracts offer investors the opportunity to own the securities, rather than just receiving a cash settlement, giving insurers greater certainty in managing interest rate risks. A key point of discussion between insurers and regulators is the treatment of existing contracts and the complex documentation processes required for the migration, the people said, who declined to be identified as the talks are private. The shift from FRAs, as the rate derivatives are called, will happen gradually, they said. Cash-rich insurers are driving demand for diverse investments and hedging options as the nation's growing wealth means more families are funneling cash toward financial markets. 'Over time, the insurance industry is likely to transition away from FRAs in favor of bond forwards,' said Churchil Bhatt, executive vice president for investments at Kotak Mahindra Life Insurance Co. They provide a hedge against fluctuations in yields and also offer investors the opportunity to get delivery of bonds, he said. The Reserve Bank of India and the Insurance Regulatory and Development Authority of India didn't respond to emails and calls seeking comment. The bond forward product will cater to the continuing demand for long-term securities from investors like insurance companies, said Gopal Tripathi, head of treasury at Jana Small Finance Bank Ltd. Bond forwards allow investors to buy debt at a future date at an agreed price, giving them a potent tool to manage interest rate risks. Insurance firms, who need predictable cash flows to match future payouts to policyholders, are expected to benefit the most. Banks can undertake long positions without any limits and covered short positions through bond forwards only for hedging, the Reserve Bank of India said in its guidelines. More stories like this are available on First Published: 30 Apr 2025, 08:53 AM IST
