Investors have raised bets that former President Donald Trump may out beat US President Joe Biden at the elections due in November, especially after last week's debate
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 benchmark 10-year yield is likely to move in a 6.95 per cent-6.99 per cent range
US bond yields rose after the economy created far more jobs than expected in May
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.
On the other hand, if BJP fails to win the elections, Nomura expects outflows from the forex channel to be over $30 billion in a couple of weeks.
Foreign investors are increasingly showing a preference for India's sovereign debt over China's to reap gains from the nation's faster economic growth
Indian government bonds are set to be included in the JPMorgan Emerging Market local currency debt index from June 28
Bond yields have eased over the last few sessions, after the Reserve Bank of India's board last week approved the transfer of a record 2.11 trillion rupees as surplus to the government
Along with direct purchases, foreign investors have leaned on derivative proxies to gain exposure to Indian bonds
Foreign investors have pumped roughly Rs 78,000 crore ($9.4 billion) into eligible sovereign bonds since JPMorgan Chase & Co.'s landmark announcement in September
The selloff came on the day when the rupee fell by the most in six months
NBFC firm Navi Finserv on Monday said it plans to raise up to Rs 600 crore through issuance of Non-Convertible Debentures (NCDs) to fund business growth. The total issue size includes a green shoe option of up to Rs 300 crore to retain oversubscription. The secured, rated, listed NCDs will have tenors of 18, 27, and 36 months and offer effective yields between 10.47-11.19 per cent per annum, the company said in a statement. The issue would open for subscription from February 26 onwards, it said. The funds raised through the bond issue will be used for onward lending, financing, loan repayment, and general corporate purposes, it said. This is the third capital raise through NCDs in the last two years by Sachin Bansal-led Navi Finserv.
Indian bonds have rallied over the past three months, fueled by overseas inflows ahead of global index inclusion starting June
Overseas investors will still have to contend with government policies that benefit from Russia's invasion of Ukraine, especially the purchase of Russian oil at discounted prices
Merchant bankers said the lender may have to pay a higher coupon as they are looking to raise a larger quantum this time
The benchmark 10-year sovereign yield fell 15 basis points last year, the most in three years.
The decision sets the stage for billions of dollars of inflows just when the bond market is straining under record government borrowings
Increasing foreign presence in the debt market will release the pressure on our banks and free up money for lending since demand for loans is far higher than deposit mobilisation
A combined 27.85 million shares, representing nearly 60 per cent of free-float equity of PNB Gilts, have so far changed hands on the NSE and BSE