Latest news with #RBIMonetaryPolicyMeeting
Time of India
10 hours ago
- Business
- Time of India
Debt funds witness best month of FY25 as investors return to safety and yield
Debt mutual funds staged a strong comeback in July 2025, posting net inflows of Rs 1.06 lakh crore, the highest monthly tally of the current financial year after two consecutive months of outflows. In contrast, the category had witnessed redemptions of Rs 15,908 crore in May and Rs 1,711 crore in June. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo Institutional categories drive the surge Open-ended debt mutual funds saw inflows of Rs 1.07 lakh crore in July, marking a sharp turnaround from June's muted activity, highlighted Nehal Meshram, Senior Analyst, Manager Research, Morningstar Investment Research . Bonds Corner Powered By Indian bonds muted ahead of domestic, US CPI data Indian government bonds traded narrowly as investors awaited domestic and U.S. inflation data for insights into the RBI's rate-easing cycle. The 10-year bond yield stood at 6.4325%. Traders are also closely monitoring U.S. Treasury yields and state bond auctions, anticipating that inflation figures will dictate market movements. Bond yields climb to steepest since April at 6.44% India bonds rangebound ahead of state debt supply, CPI data Rupee outlook hinges on US tariffs, RBI action; bonds to track inflation data What should fixed income investors do post RBI Monetary Policy Meeting Browse all Bonds News with Meshram attributed the rebound to robust allocations in institutional-heavy categories such as money market and liquid funds , supported by renewed participation in overnight funds. Live Events Money market funds led the rally, attracting Rs 44,573 crore, its strongest monthly inflow in recent times — building on steady demand over the last few months. The category has now added nearly Rs 97,000 crore in the past quarter, cementing its position as a preferred parking avenue for surplus capital. Liquid funds also recorded a solid comeback, with inflows of Rs 39,354 crore, while overnight funds garnered Rs 8,866 crore after two months of redemptions. The strong momentum in the liquid and money market segments was boosted by new fund launches, the JioBlackRock Liquid Fund raised Rs 8,917 crore, and the JioBlackRock Money Market Fund collected Rs 6,285 crore in July. Mixed trends in other categories Short-duration strategies continued to attract investor interest. Ultra short duration funds received Rs 2,277 crore, while low duration funds garnered Rs 9,766 crore, reflecting steady appetite for low-risk, carry-oriented allocations. Ultra short duration funds are a category of debt mutual funds in India that invest in fixed-income instruments such as treasury bills, commercial papers, certificates of deposit, corporate bonds, and other money market instruments but with very short maturities. Corporate bond funds also saw net inflows of Rs 1,421 crore, supported by stable credit sentiment and attractive spreads. Gilt funds reversed June's outflows to post inflows of Rs 1,050 crore. However, not all segments benefited from the rebound. Banking & PSU funds recorded the steepest outflows in the fixed-income space at Rs 662 crore, Meshram noted. Credit risk funds saw redemptions worth Rs 221 crore, pointing to ongoing caution toward lower-rated credits despite improving corporate balance sheets. Long duration funds faced withdrawals of Rs 416 crore, as uncertainty around the timing and scale of monetary easing discouraged duration-heavy bets. A strong start to the financial year July's performance pushed year-to-date net inflows for fixed-income funds past Rs 2.28 lakh crore, making it one of the best months of FY25 for the segment. Meshram said the broad-based gains across money market, liquid, and corporate bond categories underscore sustained investor appetite for yield-carry opportunities, even as investors remain selective with longer-duration exposure. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
13 hours ago
- Business
- Time of India
Indian bonds muted ahead of domestic, US CPI data
Indian government bonds traded in a narrow range in early deals on Tuesday, as traders cautiously awaited domestic and U.S. inflation data for further clues on the Reserve Bank of India 's rate-easing cycle. The yield on the benchmark 10-year bond was at 6.4325% as of 10:00 a.m. IST, compared with Monday's close of 6.4398%, the highest since April 11. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo "Any upside surprise in domestic inflation data against estimates could trigger some selling, but focus is largely on the U.S. inflation data," a trader at a private bank said. Bonds Corner Powered By Indian bonds muted ahead of domestic, US CPI data Indian government bonds traded narrowly as investors awaited domestic and U.S. inflation data for insights into the RBI's rate-easing cycle. The 10-year bond yield stood at 6.4325%. Traders are also closely monitoring U.S. Treasury yields and state bond auctions, anticipating that inflation figures will dictate market movements. Bond yields climb to steepest since April at 6.44% India bonds rangebound ahead of state debt supply, CPI data Rupee outlook hinges on US tariffs, RBI action; bonds to track inflation data What should fixed income investors do post RBI Monetary Policy Meeting Browse all Bonds News with India's inflation print is due at 4:00 p.m. IST, with analysts expecting domestic prices to have risen at their slowest pace in eight years, at 1.76% in July. Meanwhile, U.S. inflation data is set to be released after market hours. Economists polled by Reuters projected U.S. core CPI to have risen by 0.3% in July, pushing the annual rate to 3%, above the Fed's 2% target. Live Events Traders are factoring in an 85% chance of a Fed rate cut next month, according to the CME FedWatch tool . Meanwhile, higher U.S. Treasury yields are dampening the mood in the domestic market, traders said. The 10-year U.S. Treasury yield was up 1 basis point at 4.2849% in Asian hours. Separately, Indian states will raise 84.5 billion rupees via bonds later in the day. While the lower-than-expected supply may support sentiment, traders said the inflation print will drive any significant moves. RATES India's overnight index swap rates inched lower on Tuesday, while traders awaited the U.S. inflation data for directional cues, traders said. The one-year OIS rate was flat at 5.50% and the two-year OIS rate dipped over 1 bp to 5.4425%. The liquid five-year OIS rate was down 1 bp at 5.6650%.
Time of India
17 hours ago
- Business
- Time of India
Bond yields climb to steepest since April at 6.44%
MUMBAI: Indian bond yields hardened Monday to their steepest since early April, reflecting market expectations of a long pause in the current rate-easing cycle after last week's monetary policy decisions . A circumspect institutional approach ahead of the latest inflation print Tuesday also kept yields firm. Yields on the benchmark 10-year paper climbed four bps to 6.44%. One basis point is a hundredth of a percentage point. A sharp selling in bonds was seen in the first couple hours of the day, and again during the last hour, CCIL data showed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Simple Morning Habit for a Flatter Belly After 50! Lulutox Undo 'There was some overhang from the auction last week and traders had not completely exited their positions. We also breached the 6.42% mark, which would have triggered stop losses for many,' a senior trader from a primary dealership said. Bonds Corner Powered By Bond yields climb to steepest since April at 6.44% Indian bond yields experienced a notable increase, reaching their highest levels since early April, driven by market anticipation of a prolonged pause in the current rate-easing cycle. Institutional caution ahead of the upcoming inflation data further contributed to the firm yields. The benchmark 10-year paper's yields rose by four bps to 6.44%, with significant selling observed during the day. India bonds rangebound ahead of state debt supply, CPI data Rupee outlook hinges on US tariffs, RBI action; bonds to track inflation data What should fixed income investors do post RBI Monetary Policy Meeting SEBI reforms are reshaping bond investing in India Browse all Bonds News with The latest monthly inflation print is due Tuesday. Separately, traders said banks and other participants refrained from taking positions in a truncated week. Mumbai's financial markets will be closed on Friday for Independence Day. 'Bonds are trading with a bearish sentiment and there are no positive triggers to look out for,' a trader said.
Time of India
a day ago
- Business
- Time of India
India bonds rangebound ahead of state debt supply, CPI data
Indian government bonds traded in a narrow range in early deals on Friday, as traders awaited the state debt auction and the India and U.S. inflation readings due a day later. The yield on the benchmark 10-year bond was at 6.4219% as of 10:10 a.m., compared with Friday's close of 6.4121%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Why Seniors Are Snapping Up This TV Box, We Explain! Techno Mag Learn More Undo Government bond yields surged in the final market hours on Friday, after New Delhi approved a large compensation for oil marketing companies, triggering concerns of more fiscal measures by the government. Bonds Corner Powered By India bonds rangebound ahead of state debt supply, CPI data Indian government bonds traded narrowly as traders awaited state debt auction results and inflation readings from India and the U.S. The 10-year bond yield was at 6.4219%. State debt supply is lower than anticipated. India's July retail inflation is expected to ease to 1.76%. U.S. inflation data could influence the Federal Reserve's rate-cut decisions, impacting the domestic bond market. Rupee outlook hinges on US tariffs, RBI action; bonds to track inflation data What should fixed income investors do post RBI Monetary Policy Meeting SEBI reforms are reshaping bond investing in India RBI signals caution despite softer inflation; corporate bonds still attractive Browse all Bonds News with "A lower-than-expected state debt supply likely triggered some short covering at open, but the yields are expected to remain rangebound," a trader at a private bank said. Indian states are set to raise 84.5 billion rupees ($965.44 million) via bonds later in the day, which is lower than what traders had anticipated. Live Events Any large action would be seen only after inflation print, another trader said, expecting the 10-year bond yield to oscillate between 6.38% and 6.43% during the day. India's July retail inflation data , which is due at 4:00 p.m. IST on Tuesday, is expected to ease to an eight-year low of 1.76%, down from 2.10% in June, according to a Reuters poll. The U.S. inflation reading is also due after market hours on Tuesday, which could influence the Federal Reserve's rate-cut trajectory and have a bearing on the domestic bond market. RATES India's overnight index swap rates were little changed in early deals, as traders awaited the U.S. and India inflation data for directional cues. The one-year OIS rate was at 5.50% and the two-year OIS rate was at 5.4550%. The liquid five-year OIS rate was up slightly at 5.6750%. ($1 = 87.5250 Indian rupees).
Time of India
7 days ago
- Business
- Time of India
RBI Monetary Policy: Malhotra & Co keeps policy rates unchanged at 5.5% amid Trump tariff threats - The Economic Times Video
RBI Monetary Policy Meeting: The Reserve Bank of India's Monetary Policy Committee maintained the repo rate at 5.5% in its August policy review, despite inflation easing to 2.1% and calls for a final rate cut. The US's 25% tariff on Indian imports adds to economic uncertainty, but economists remain divided on its policy impact.
