Funds

It bears repeating that retail inflation is well above the Reserve Bank of India’s (RBI’s) medium-term target of 4% and there is an outside chance it may breach the upper tolerance level of 6% in the coming months. That would seriously imperil RBI’s and the monetary policy committee’s (MPC’s) credibility. History is witness to what loss of credibility...

In the Union Budget 2018, the finance minister proposed to increase the lock-in period of investments in capital gain tax exemption bonds (under section 54EC of the Income Tax Act, 1961) to 5 years. In the Union Budget 2017, the government had said it would introduce more financial instruments to save tax on capital gains. However, instead of...

The bond markets in India have been witnessing significant volatility l ately. The 10-year Gsec yield has risen from the low of 6.37 percent in the month of Jan 2017 to 7.52 percent as of date. By any count, this is a major bear grip on the market. The bond market has been wary on two counts...

US yields have soared to the highest levels in nearly 3 years as investors bet on an accelerating economy and inflation. German 5-year bunds broke above zero for the first time since December 2015. Back home, yields rose to a 2 year high after the Economic Survey hinted at “a pause in general government fiscal consolidation”. In an...

Mumbai: Indian 10-year bond yield dropped most in a year on Monday after the Reserve Bank of India (RBI) scrapped plans to sell bonds worth Rs10,000 crore via open market operations (OMOs). At 11.14am, the 10-year bond yield was trading at 6.905%, down 14.40 basis points, its biggest slide since November 2016, from its previous close of 7.049%. Bond...

India’s benchmark 10-year bond yield rose to its highest in over 13 months as higher-than-expected October inflation dashed rate cut expectations. The 10-year bond yield went up as high as 7.01 percent, the highest since September 29, 2016, after October inflation rose to 3.58 percent as food and fuel prices accelerated. The paper had closed at 6.97 percent...

Mumbai: The 10-year bond yield hit over 7% on Tuesday, the first time after 14 months, as retail- and wholesale-based inflation quickened more than estimated, reducing expectation of a rate cut any time soon by the Reserve Bank of India (RBI). At 12.05pm, the 10-year bond yield was at 7.058%, a level last seen on 8 September 2016, compared...

Manappuram Finance has raised Rs 200 crore by issuing secured bonds on a private placement basis. The Financial Resources and Management Committee of the board of directors of the company in a meeting held today approved the allotment of 2,000 secured redeemable non-convertible debentures, the company said in a regulatory filing. With a face value of Rs 10...

Mumbai: Investors shouldn’t read too much into Friday’s advance in Indian bonds, which follows a slower-than-estimated rise in inflation last month. That’s because the softer headline number masks an increase in demand-side pressures, which is what the central bank looks to manage through interest rates. The so-called core inflation climbed to 4.6% in September from 4.5% in August, according...

India’s bonds slumped on Wednesday, sending yield sharply higher, after the Reserve Bank of India (RBI) cut the statutory liquidity ratio, or the amount of bonds banks must set aside with the central bank, by 50 bps to 19.50 percent from mid-October. The decision, announced at the same time the RBI kept the repo rate unchanged...