India Bond

The 10-year US Treasury yield dropped six basis points in Asia trading, after US President-elect Donald Trump tapped prominent investor Scott Bessent for the position of US Treasury secretary

Sales in the fiscal year starting April 1, 2025, are likely to be higher on redemption of debt issued during the Covid years

The benchmark 10-year yield is likely to move between 6.85 per cent and 6.89 per cent

India's retail inflation eased in July due to vegetable inflation falling and high base effect as annual retail inflation was 3.54 per cent in July, lowest since Aug 2019, down from 5 per cent in June

South Asian nation's star economy and improving business environment, at a time of slowing growth in China, has made Indian assets investor darling

Investors continue to gauge the pace of foreign inflows into Indian government bonds over the next few days after an underwhelming response so far

To accommodate India's 10 per cent weight in the GBI EM index, HSBC said in a recent note, a reweighting will occur for other EM peers in the index, which will see a reduction in their weights.

Category has lower share than before among rated instruments

Reserve Bank of India (RBI) will release the minutes of its June policy meeting after market hours on Friday

Focus has shifted to US bond yields and oil prices, with the market digesting Prime Minister Narendra Modi's smaller victory margin for a third term.

Fiscal discipline has been a hallmark of Modi's decade-long administration, and many investors were expecting him to win a supermajority to reduce the budget deficit

JPMorgan Asset joins a slew of global investors, including Abrdn Plc and Zurich-based Vontobel Asset Management, in turning to Indian bonds ahead of their inclusion

The yield on benchmark 10-year bond was little changed at 7.09 per cent on Tuesday

De Guzman's comments mirror global investors' generally bullish outlook on the country that's been layered with notes of caution about macroeconomic challenges

The Reserve Bank of India plans to absorb the inflows and match the outflows using its near-record high $642 billion reserves

India's foreign-exchange reserves hit a record high in April, and the rupee has remained emerging Asia's best performing currency even against a strong dollar, reflecting increased investor interest

While liquidity tightness was not acute in April and overnight rates had not hit the MSF ceiling, the RBI probably anticipated election-related constraints on govt spending could tighten liquidity

Corporate bonds have also benefited from flows into government debt as the former is largely priced off sovereign notes

Investments into index-eligible Fully Accessible Route bonds have risen by Rs 81,218 crore ($9.8 billion) since the announcement in September, data from the Clearing Corp. of India show

The index would encompass 34 Indian securities and represent 7.26% of a $6.18 trillion index on a market value-weighted basis