Over the years, market borrowings has been a dominant source of financing the Gross Fiscal Deficit. As per RBI records, gross market borrowing of states at Rs 381,980 crore in 2016-17 increased by 29.7 percent over the previous year.
The euro zone economy may be improving, but a change in the European Central Bank's policy guidance could backfire, tightening financial conditions, policymakers concluded at their March 9 meeting, the minutes of the discussion showed on Thursday.
We do not expect to see much movement on bond yields before the policy is out, says Bhaskar Panda of HDFC Bank.
The scramble for bonds came after some traders on Friday shorted the 6.97 percent bond due in 2026 and needed to secure the bonds on Monday to settle their trades.
Banks' heavy investments into G- secs since the note-ban may turn out to be a bad call as they await a treasury shock in the current quarter following the 45 -50 bps spike in bond yields.
A combination of mixed global cues as well as implied volatility on expiry day of derivative contracts could keep a check on the market on Thursday. Trends on SGX Nifty indicate a flat opening with a positive bias.
PNB Gilts aim to replicate the strong performance of the last two quarters in the fourth quarter of the year, says Managing Director SK Dubey, But he also quickly cautions, that it would be difficult as various challenges persist in the market.
Newspapers and markets were forecasting the Reserve Bank of India would cut its key rate by a quarter of a percentage point. But the RBI held rates and moved to a "neutral" policy stance, signalling an end to India's longest monetary easing cycle since the 2008-09 global financial crisis.
In an unusual occurrence bond markets reacted very slowly to the central bank‘s credit policy move of keeping interest rate stable.
Speaking to CNBC-TV18, Ananth Narayan, Head-Financial Markets at Standard Chartered Bank, said he does not expect short-term funding rates to move higher.
Reserve Bank of India (RBI) is towards the end of rate cut cycle, says Vivek Rajpal of Nomura India. He further says that bond yields will rally only by 5-10 basis points (bps) if RBI cuts rate by 25 bps and expect the 10-year bond yield is unlikely to go to the level of 6.35.
On the US dollar, Ananth Narayan, Head- Financial Markets at Standard Chartered Bank says, some legs in the growth story still remains. It is likely that fundamentals prevail over President-elect Donald Trump‘s statements of weaker dollar.
Foreign investors net sold about USD10 billion in seven stock markets - Taiwan, India, Indonesia, the Philippines, Vietnam, Thailand and South Korea - in the fourth quarter, according to stock exchange data.
Despite uncertainties surrounding the economy right now, Morgan Stanley expects double-digit earnings growth next year, says Head-India Equity Research Ridham Desai in an interview to CNBC-TV18's Consulting Editor Udayan Mukherjee. "Point of high uncertainty leads to point of high return," he says.
With bond yields treading higher, US dollar going stronger and US equities hitting all-time highs, gold look technically weak at least in the short term says Adrian Ash of Bullion Vault.
A fall in yields has resulted in stocks looking cheaper than bonds for the first time in eight years, says Prabhat Awasthi, Head of Equities & MD â€“ India at Nomura Financial Advisory & Securities.
The Organization of the Petroleum Exporting Countries on Wednesday agreed to its first output cut since 2008, with Saudi Arabia accepting "a big hit" on its production. Non-OPEC Russia will also join output reductions for the first time in 15 years to help OPEC prop up oil prices.
The implications for markets appear to be further increases in bond yields, developed world stocks and the dollar, while emerging market currencies, stocks and bonds are expected to struggle under the weight of higher US bond yields.
The 10-year benchmark yield is likely to trade in a range of 6.82-6.87 percent today, says Ajay Manglunia of Edelweiss.
Riskier assets have had a difficult few weeks, undermined by concerns about a potential rise in US interest rates, the outcome of US elections, Britain's departure from the EU and the health of German and Italian banks.
In an interview with CNBC-TV18, Kamakshya Trivedi, Chief EM Macro Strategist, Goldman Sachs, talked about his outlook on markets and whether he thinks they will be able to stomach a Fed rate hike and a rise in bond yields globally.
Neelkanth Mishra of Credit Suisse says while the broader Indian market hasn't moved much in the last two months, it has continued to outperform global equities marginally.
Interest rates are likely to trend lower and there could be one more cut in the repo rate between now and March, says Lakshmi Iyer, Chief Investment Officer-Debt and Head-Products at Kotak Mahindra Mutual Fund
The Indian rupee opened lower at 66.75 per dollar on Friday versus 66.69, down 18 paisa.
USD-INR trading range for the day seen between 66.40-66.65/dollar, says Mohan Shenoi of Kotak Mahindra Bank.