Traders are seen buying the benchmark papers in anticipation that those will be accepted in RBI’s bond purchase programmes at a slightly lower yield. Synopsis Last week, the benchmark bond yield dropped below the crucial 6 percent mark to 5.96 percent after the central bank announced a Government Securities Acquisition Programme (GSAP) for Rs 35,000 … Read more
MUMBAI: In a remarkable instance of candidness, Prof Jayanth Verma admitted at the April rate-setting meeting of RBI’s Monetary Policy Committee that the time-based forward guidance given by the MPC in October failed to flatten the government bond yield curve in the country. “From my perspective, the principal motivation for the forward guidance was to … Read more
MUMBAI: Spreads on corporate bonds over government securities of similar tenure has declined to pre-Covid levels by the end of September, according to ratings firm Icra. This means these bonds have become less risky and are at the same level of risk before the onset of the pandemic COVID-19, leading to a virtual standstill of … Read more
State governments are paying more than sovereign-backed companies to raise money from the bond market. The virus-induced economic crisis cuts into their routine inflows including GST, VAT fanning investor concerns. Select state bonds like Tamil Nadu, West Bengal, Uttar Pradesh are yielding 7-15 basis points higher than corporate bonds of PGC, NTPC, IRFC, dealers said. … Read more