Page 7 - Bond Market

States continue to pay high coupon on debt at over two-year high of 7.72%

The weighted average rates of state debt continued to remain at an over two-year high of 7.72 per cent at the second weekly auction of the quarter on Tuesday, making it the highest so far this fiscal. Accordingly, the spread between 10-year state bonds and benchmark G-sec yield also remained firm at 54 bps, with both inching up by 1 bps from the previous week, according to a note by Icra Ratings' chief economist Aditi Nayar. Nine states raised Rs 19,300 crore from the market selling government securities, which was 34 per cent lower than the amount indicated for this week in the auction calendar. Despite lower supply, the weighted average cut-off inched up to 7.72 per cent, which is the highest so far in FY24 from 7.71 per cent last week. The payout increased in spite of the weighted average tenor remaining unchanged at 11 years. Both this had the spread between the cut-off of the 10-year state bonds and the 10-year benchmark G-sec yield inching up to 54 bps from 53 bps last week,

Indian bonds may be included in Bloomberg EM index from September

The proposal comes just a few months after JPMorgan said it would include India in its widely tracked emerging market debt index from June

Stars align for Indian sovereign bonds after first yearly gain since 2020

The benchmark 10-year sovereign yield fell 15 basis points last year, the most in three years.

Vedanta Resources' bondholders back company's debt restructuring plan

"The overwhelming consent to the revised terms will take immediate pressure (off) Vedanta to repay the debt obligation," Vedanta Resources said

Dollar set for biggest daily jump since October as US bond yields rebound

The dollar index, which measures the U.S. currency against six counterparts, was last up 0.67% at 102.05, on track for its biggest daily percentage gain since October

S&P downgrades Vedanta Resources to 'CC' on potential bond extensions

The ratings remain on CreditWatch with negative implications, where they were first placed on September 29, 2023

Indian govt bond yields steady before key US Nov inflation prints

India's retail inflation likely picked up in November due to higher food prices after declining for three months, bringing it closer to the upper end of the RBI's 2%-6% target range, a poll found

Indian cos' rupee bond issuance at record in 2023 on jumbo debt sales

Indian companies raised around 914 billion rupees ($10.97 billion) through the private placement of bonds in November

Moody's cuts outlook on China's sovereign bonds to negative on rising debt

Moody's lowered its outlook to negative from stable while retaining a long-term rating of A1 on the nation's sovereign bonds, according to a statement

Corporate bond market set to double by FY2030 at Rs 100 trn: Report

Market expected to finance one-sixth of envisaged capex in infrastructure, corporate sectors

IIFL Samasta maiden retail bond offer for Rs 1,000 cr opens tomorrow

IIFL Samasta Finance's maiden retail bond offer that will open for subscription on Monday plans to raise Rs 1,000 crore to fund its business growth. The fund raised through the public issue of non convertible debentures (NCDs) would be utlised for the purpose of business growth and capital augmentation, IIFL Samasta Finance said in a statement on Sunday. The non-banking microfinance company (NBFC-MFI) will issue bonds, aggregating to Rs 200 crore, with a green shoe option to retain over-subscription of up to Rs 800 crore (aggregating to a total of Rs 1,000 crore). The bonds, which closes for subscription on December 15, propose to offer the highest coupon rate of 10.50 per cent per annum for a tenor of 60 months. NCD is available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly and annual basis for each of the series.

IIFL Samasta to raise Rs 1,000 cr via bonds, offers 10.50% return per annum

IIFL Samasta Finance on Friday said it plans to raise up to Rs 1,000 crore through its maiden public issue of non convertible debentures (NCDs), for the purpose of business growth and capital augmentation. The non-banking microfinance companies (NBFC-MFI) will issue bonds, aggregating to Rs 200 crore, with a green shoe option to retain over-subscription of up to Rs 800 crore (aggregating to a total of Rs 1,000 crore). The bonds, which opens for subscription on Monday, proposes to offer highest coupon rate of 10.50 per cent per annum for tenor of 60 months. NCD is available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly and annual basis for each of the series. The company caters to the credit needs of underserved and unserved population, primarily women entrepreneurs from underprivileged background through a well-diversified portfolio through a network of 1,500 branches, IIFL Samasta Finance MD and CEO Venkatesh N said. Th

India debut 50-year bond fully sold on increasing insurer demand

The government sold Rs 10,000 crore ($1.2 billion) of the 2073 bond at a cutoff yield of 7.46 per cent, the Reserve Bank of India said in a statement

Ambani's Reliance Industries considers record $1.8 billion bond sale

The transaction, if it concludes, would be the biggest rupee sale ever for Reliance, Bloomberg-compiled data show. It would also be the conglomerate's first domestic bond since 2020

India govt bond yields edge lower as crude oil prices, US peers drop

The 10-year benchmark bond yield closed at 7.3408% after ending at 7.3769% in the previous session

Indian govt benchmark bond yields ends higher, tracking their US peers

The 10-year benchmark bond yield closed at 7.3769%, after ending at 7.3626% in the previous session

Weekend Bites: More trouble in IT paradise, RBI's plans, and taxing expats

In which we munch over the week's platter of news and views

RBI to conduct open market bond sales to absorb durable liquidity

Core liquidity surplus includes the government's cash balances held with the central bank

Banking system liquidity bounces back to surplus after three weeks

The RBI Governor, Shaktikanta Das, had said on Friday that the central bank might conduct open market operations to mop up excess liquidity

Israel stock and bond markets sink, businesses shut after Hamas attack

Gaza militants also fired thousands of rockets into Israel, some reaching as far as Tel Aviv, prompting airlines to suspend flights to and from Israel