Bond Index

Govt securities to be included in JP Morgan Bond Index from June 28

Indian government bonds or government securities (G-secs) would be included in JP Morgan-Emerging Market Bond Index beginning Friday, a move that will bring down borrowing cost for the government. The inclusion of IGBs will be staggered over a 10-month period from June 28, 2024 to March 31, 2025, indicating one per cent increment on its index weight. India's weight is expected to reach the maximum threshold of 10 per cent in the GBI-EM Global Diversified, and approximately 8.7 per cent in the GBI-EM Global Index. This would help attract higher foreign flows, as many overseas funds are mandated to track global indices. It will also help bring in large passive investments from overseas, as a result of which more domestic capital would be available for industry, as crowding out would be reduced. In her Budget speech for 2020-21, Finance Minister Nirmala Sitharaman had said, Certain specified categories of government securities would be opened fully for non-resident investors, apart f

Explained: India inclusion in JP Morgan EM Bond index, market impact & more

India inclusion in JP Morgan Bond Index: The inclusion process will begin on June 28, 2024 and will be completed over a period of 10 months, till March 2025

India's bond index entry to suck $11 bn from S Africa, Poland and Thailand

It will also pull $2.9 billion and $2.5 billion from the Czech Republic and Chile respectively, it added

JP Morgan India bond index inclusion impact: Weight cut likely for 3 EMs

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.

India needs 'balancing act' to manage bond index capital flows, says S&P

The index inclusion is expected to attract $40 billion in inflows in 18 months, according to estimates from Goldman Sachs Group Inc. and others

India's inclusion in global bond index not enough to lift rating: Moody's

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

India's inclusion in bond index on track, most clients ready, says JPMorgan

The difficulty in setting up to trade in India due to an elaborate documentation process has been one reason why foreign investors have been apprehensive about the nation's entry into global indexes

JPMorgan's inclusion of Indian bonds into index to aid private credit mkt

Once the change takes effect on June 28, it will be easier to compare the performance of an Indian credit fund with an investment in Singapore, Korea or the US, said the head of BPEA Credit

HSBC helps overseas funds navigate India's bond market as inclusion nears

Investors have cited several obstacles to obtaining an onshore permit in India, including heavy documentation process, margin requirements for trading, barriers to freely move money out of the country

RBI may absorb foreign inflows via bond index inclusion: JP Morgan's Chinoy

Chinoy also highlighted the dynamic relationship between the dollar and the rupee

India to remain on alert for 'hot money' after bond index inclusion

The aim will be to "prevent volatility or volatile inflows" but "never" to restrict outflows, Somanathan said, adding that "all possibilities are open to keep volatility in check.

Foreign flows into Indian bonds hit 6-year high ahead of index inclusion

Foreign portfolio investors bought a net 127.2 billion rupees ($1.53 billion) of bonds in November, the highest since June 2017, data from Clearing Corp of India showed

Monetary policy review: We use one stone to kill one bird, says RBI

There are several moving parts in the whole liquidity scenario. We will watch the evolving trends and notify as and when necessary: Das

Avoid speculating in long-duration funds, invest with 5-year plus horizon

If you are unsure about where rates are headed over the next year, go for dynamic bond funds

FTSE Russell bond index not to include India, wk after JPMorgan's inclusion

Indian government bonds and the local currency took the news in their stride.

ICICI Bank sees $10 bn of flows before India's entry to global bond index

As markets anticipate inclusion of the debt in other indexes, including the Bloomberg Global Aggregate, the flows could rise to $50 billion by the end of next year

India's inclusion in the bond index will increase investor vigilance

For the fast-growing economy that typically runs a current-account deficit, the decision opens the door to as much as 10% of the $236 billion of assets at funds

Despite JP Morgan move, analysts remain watchful of bank stocks; here's why

The rally in PSBs, analysts feel, was more a knee-jerk reaction to the development, and the actual benefits will start to accrue once the addition takes place in 2024

India's inclusion in EM bond index can spark higher FX volatility: Bankers

The inclusion is expected to spur staggered inflows of $22-$30 billion, analysts estimate

Indian bonds, and rupee surge post inclusion in JPMorgan EM bond index

Market experts are projecting approximately $30 billion in inflows into the government bond market following India's inclusion in the index