Canceled auctions and a dovish central bank decision drove benchmark yields down by more than 20 basis points in the past two weeks.
Avoid longer-duration bonds; if you buy them, hold till maturity
High borrowing numbers in the budget as well as absence of any steps to facilitate global bond index inclusion roiled the domestic markets, pushing the yield on the benchmark debt to 6.8
The selling of JGBs forced 5-year yields above zero percent for the first time in six years, and came on the heels of the Bank of England's rate rise on Thursday
The closing yield for the 2032 govt bond was 6.62% on Monday; RBI cut-off at auction was 6.54%
It was widely expected RBI would announce a three-day reverse repo auction of Rs 2 trn, rolling over last such auction conducted on Monday; that did not happen during market hours
Cystal ball gazing for the trends and challenges for the banking sector in the New Year
Traders said the rising global oil prices, heavy supply of bonds at the weekly auctions and high domestic retail inflation will all sustain the upward pressure on yields
Monday's rise in bond yields was also triggered by the quarter-end selling by mutual funds and other investors, said bond dealers
Kaisa's proposal to delay the maturity of the bond comes against the backdrop of growing creditor concerns about its ability to meet their near-term offshore repayment obligations
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Two innovative, customer-centric schemes launched by Prime Minister Narendra Modi on Friday will result in deepening the bond market by broadening the base of investors, experts said
The repeated shocks have only worsened investor sentiment
Stock of Canara Bank closed 1.71 per cent up at Rs 201.95 on BSE.
Shorter-maturity bonds in these funds get reinvested at higher coupon rates
The RBI stopped the Government Securities Acquisition Programme (G-SAP), through which it has infused Rs 2.2 trillion of liquidity in the system
Economists and analysts are unanimous that the Reserve Bank has embarked on the long road to policy normalisation
The country's largest lender raised Rs 4,000 cr via AT1 bonds last month
The central bank is tight-lipped about normalisation, even as other global central banks have started sounding hawkish
A total of 50,000 bonds have been issued with face value of Rs 10 lakh each.