Latest news with #SandeepBagla
Mint
3 days ago
- Business
- Mint
Bonds prices under pressure ahead of ₹25,000 crore auction of government securities
Government bonds dipped in early trading on Friday, as investors remained cautious ahead of the weekly debt sale that will test demand. The yield on the benchmark 10-year bond was at 6.396%, as of 12:57 pm, while it closed at 6.3861 per cent on Thursday. Bond yields move inversely to prices. Government is set to raise ₹ 25,000 crore (equivalent to $2.86 billion) through the sale of seven-year ( ₹ 11,000 crore) and 50-year bonds ( ₹ 14,000 crore) in the debt auction today. RBI's monetary policy committee on Wednesday decided to hold repo rate Governor's statement lacked dovish sentiment, which pared rate easing bets. This led to a decline in investor appetite for debt, and traders said that demand for auction will be important for determining the direction of bond yields. "When there is a lot of supply, whereas the demand remains low, bond prices will go down in the short term. They are typically bought by large institutional investors such as insurance and pension funds and not by retail investors," says Sridharan S., a Sebi-registered investment advisor and founder of Wealth Ladder Direct Particulars 6.28% GS 2032 7.09% GS2074 Notified amount ₹ 11,000 crore ₹ 14,000 crore Cut off price 99.64 98.78 'The uncertainties appear to have increased for bonds. With core inflation stubbornly high and headline inflation projected at 4.9 per cent after a few months, there seems to be little room for an immediate rally,' said Sandeep Bagla, CEO at Trust Mutual Fund. Investors are now awaiting next quarter's GDP data by the end of August to get cues which will further determine RBI's policy trajectory, Reuters reported. The recent move by US President Donald Trump to levy 50 percent tariffs on Indian imports could harm growth prospects, with a possible adverse impact on the manufacturing sector and garment makers. Meanwhile, overnight index swap rates were marginally changed after witnessing some receiving in the previous session. The one-year OIS rate was steady at 5.49 percent, and the two-year OIS rate was slightly up at 5.45 percent. For all personal finance updates, visit here
Business Recorder
3 days ago
- Business
- Business Recorder
India bonds edge down in thin trade before debt sale
MUMBAI: Indian government bonds dipped in early trading on Friday, as investors remained wary ahead of the weekly debt sale that will test demand in the wake of a disappointing central bank policy decision. The yield on the benchmark 10-year bond was at 6.3949%, as of 10:20 a.m. IST, while it closed at 6.3861% on Thursday. Bond yields move inversely to prices. New Delhi is set to raise 250 billion rupees ($2.86 billion)through the sale of seven-year and 50-year bonds in the debt auction later in the day. The RBI's decision to hold rates and a lack of dovish cues in the Governor's statement had pared rate easing bets. It has curbed investor appetite for debt, traders said, adding that demand for auction will be key for determining direction of bond yields. 'The uncertainties appear to have increased for bonds,' said Sandeep Bagla, CEO at Trust Mutual Fund. 'With core inflation stubbornly high and headline inflation projected at 4.9% after a few months, there seems to be little room for an immediate rally.' Market participants are now awaiting next quarter's GDP data by August-end for cues on the RBI's policy easing trajectory. U.S. President Donald Trump's 50% tariffs on Indian imports could hurt India's growth prospects as it would curtail India's ambitions to develop its manufacturing sector and hurt its garment makers.
Time of India
07-07-2025
- Business
- Time of India
Stable Indian government bond yields push investors towards more attractive corporate debt
Indian mutual funds and insurance companies are shifting towards an accrual strategy to capitalise on higher corporate bond yields , as government bond yields are expected to remain largely stable, investors told Reuters on Wednesday. An accrual strategy focuses on earning returns primarily through interest payments, rather than through trading or capital gains. Fund managers are increasingly favouring shorter-duration bonds when yields are near the upper end of the range. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Dubai villas | search ads Get Deals Undo The LSEG benchmark AAA-rated two-year and three-year corporate bond yields stood at 6.56% and 6.70%, respectively, on Monday. Bonds Corner Powered By Stable Indian government bond yields push investors towards more attractive corporate debt Indian mutual funds and insurance firms are increasingly adopting an accrual strategy, drawn by higher corporate bond yields amidst stable government bond yields. Mutual funds favor shorter-duration bonds, while insurance companies show interest in longer-duration bonds, specifically the five-year to 10-year part of the curve. Rupee bond binge by Indian firms poised to slow after record run Bond market awakening in 2025: India catching up with global capital flows India bond traders eye US data, RBI liquidity operation for cues ETMarkets Smart Talk - FPI outflows from Indian bonds likely tactical profit booking, says Puneet Pal of PGIM India AMC Browse all Bonds News with The spread between corporate and government bond yields in these two tenors has risen around 20-30 basis points over the past month to 85 bps. "As long as there is no danger of policy reversing, the two-three-year bonds will respond to local liquidity ... so, we have already reallocated funds from the long bonds to the 2-3-year corporate bonds," said Sandeep Bagla, CEO at Trust Mutual Fund, which manages overall assets worth around 35 billion rupees ($408.00 million). Live Events The uptick in corporate bond yields has surpassed gains in government bonds since the Reserve Bank of India shifted its monetary policy stance and began withdrawing liquidity from the banking system. "In the context of present market conditions and macro-economic environment, we are cutting duration... I am positive on the shorter end as liquidity is likely to flow there," said Killol Pandya, senior fund manager for debt at JM Financial Asset Management, which manages debt assets worth about 38 billion rupees. "We have scaled back duration in our dynamic bond fund too," he said, noting that the company had gone from an exclusively government bond approach to strategically moving some funds to corporate bonds, towards the accrual system. While mutual funds are concentrating on the shorter end of the corporate bond yield curve, insurance companies are showing interest in longer-duration bonds. "We believe currently the most attractive part of the market is corporate bonds, especially the five-year to 10-year part of the curve," said Rahul Bhuskute, CIO at Bharti AXA Life Insurance. The spread between five-year and 10-year corporate bond yields and government bond yields remains in the range of 75-85 bps. ($1 = 85.7850 Indian rupees)
Economic Times
07-07-2025
- Business
- Economic Times
Stable Indian government bond yields push investors towards more attractive corporate debt
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian mutual funds and insurance companies are shifting towards an accrual strategy to capitalise on higher corporate bond yields , as government bond yields are expected to remain largely stable, investors told Reuters on accrual strategy focuses on earning returns primarily through interest payments, rather than through trading or capital gains. Fund managers are increasingly favouring shorter-duration bonds when yields are near the upper end of the LSEG benchmark AAA-rated two-year and three-year corporate bond yields stood at 6.56% and 6.70%, respectively, on spread between corporate and government bond yields in these two tenors has risen around 20-30 basis points over the past month to 85 bps."As long as there is no danger of policy reversing, the two-three-year bonds will respond to local liquidity ... so, we have already reallocated funds from the long bonds to the 2-3-year corporate bonds," said Sandeep Bagla, CEO at Trust Mutual Fund, which manages overall assets worth around 35 billion rupees ($408.00 million).The uptick in corporate bond yields has surpassed gains in government bonds since the Reserve Bank of India shifted its monetary policy stance and began withdrawing liquidity from the banking system."In the context of present market conditions and macro-economic environment, we are cutting duration... I am positive on the shorter end as liquidity is likely to flow there," said Killol Pandya, senior fund manager for debt at JM Financial Asset Management, which manages debt assets worth about 38 billion rupees."We have scaled back duration in our dynamic bond fund too," he said, noting that the company had gone from an exclusively government bond approach to strategically moving some funds to corporate bonds, towards the accrual mutual funds are concentrating on the shorter end of the corporate bond yield curve, insurance companies are showing interest in longer-duration bonds."We believe currently the most attractive part of the market is corporate bonds, especially the five-year to 10-year part of the curve," said Rahul Bhuskute, CIO at Bharti AXA Life spread between five-year and 10-year corporate bond yields and government bond yields remains in the range of 75-85 bps.($1 = 85.7850 Indian rupees)
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Business Standard
07-07-2025
- Business
- Business Standard
Stable govt bond yields push investors towards attractive corporate debt
Indian mutual funds and insurance companies are shifting towards an accrual strategy to capitalise on higher corporate bond yields, as government bond yields are expected to remain largely stable, investors told Reuters on Wednesday. An accrual strategy focuses on earning returns primarily through interest payments, rather than through trading or capital gains. Fund managers are increasingly favouring shorter-duration bonds when yields are near the upper end of the range. The LSEG benchmark AAA-rated two-year and three-year corporate bond yields stood at 6.56 per cent and 6.70 per cent, respectively, on Monday. The spread between corporate and government bond yields in these two tenors has risen around 20-30 basis points over the past month to 85 bps. "As long as there is no danger of policy reversing, the two-three-year bonds will respond to local liquidity... so, we have already reallocated funds from the long bonds to the 2-3-year corporate bonds," said Sandeep Bagla, CEO at Trust Mutual Fund, which manages overall assets worth around ₹3,500 crore ($408.00 million). The uptick in corporate bond yields has surpassed gains in government bonds since the Reserve Bank of India shifted its monetary policy stance and began withdrawing liquidity from the banking system. "In the context of present market conditions and macro-economic environment, we are cutting duration... I am positive on the shorter end as liquidity is likely to flow there," said Killol Pandya, senior fund manager for debt at JM Financial Asset Management, which manages debt assets worth about ₹3,800 crore . "We have scaled back duration in our dynamic bond fund too," he said, noting that the company had gone from an exclusively government bond approach to strategically moving some funds to corporate bonds, towards the accrual system. While mutual funds are concentrating on the shorter end of the corporate bond yield curve, insurance companies are showing interest in longer-duration bonds. "We believe currently the most attractive part of the market is corporate bonds, especially the five-year to 10-year part of the curve," said Rahul Bhuskute, CIO at Bharti AXA Life Insurance. The spread between five-year and 10-year corporate bond yields and government bond yields remains in the range of 75-85 bps.
