Bond Market News as of May 16, 2024:
India:
- Bond yields steady: Indian bond yields remained stable, focusing on oil prices amid rising tensions in West Asia. The benchmark 10-year bond yield was at 7.1023% as of 10:00 a.m. IST.
- FPIs inflows at nine-year high: Foreign portfolio investments (FPIs) in the debt market reached a nine-year high of ₹1.21 lakh crore in FY24, which could help soften bond yields.
- JPMorgan index inclusion: JPMorgan’s potential inclusion of India in its emerging market debt index in June has raised expectations of increased foreign investment and further downward pressure on yields.
- Lower face value for bonds: SEBI’s decision to lower the face value of listed bonds to ₹10,000 from ₹1 lakh aims to make the bond market more accessible to retail investors.
Global:
- US Treasury yields rise: US Treasury yields rose as traders awaited the upcoming inflation report, which could influence the Federal Reserve’s decision on future interest rate hikes.
- Rupee bonds outperform: Rupee bonds are expected to outperform US and other developed markets due to the strengthening rupee and India’s relatively high yields.
- Asian junk bond sales soar: Asian junk bond sales are at their highest in five years, driven by a boom in India.
- El Salvador’s $1 billion bond: El Salvador successfully sold a $1 billion bond linked to the International Monetary Fund (IMF), receiving a positive rating.
Additional News:
- Goswami Infra seeks debt pact change: SP Group company Goswami Infra is seeking bondholder approval to change the terms of its Rs 14,300 crore bonds to avoid higher interest payments.
- Two Bajaj companies raise record debt: Two Bajaj companies raised a record Rs 12,000 crore in debt on a single day as yields fell.
Sources:
- Economic Times: https://economictimes.indiatimes.com/topic/bond-market
- Business Standard: https://www.business-standard.com/topic/india-bond-market
- Mint: https://www.livemint.com/topic/debt-market
- Financial Express: https://www.financialexpress.com/about/bond-market/
I hope this information is helpful!
