“The protracted trade wars which are right now happening is suggesting that the global environment is much more positive for bonds," Prasanna said.
While the dovish tilt is a blessing, the Flash PMIs re-ignite concerns over the slowdown
Investors are worried that the government is granting farm loan waivers at a time when income tax collection and asset sales are falling short of estimates
"Sebi will soon come out with norms on corporate bonds to encourage companies to tap this route for raising funds. The government proposal to mandate listed firms to raise 25 per cent funds via corporate bonds is a good step and Sebi will come out with detailed rules by September in this regard," Tyagi told reporters here after its board meeting.
We do not expect to see much movement on bond yields before the policy is out, says Bhaskar Panda of HDFC Bank.
These changes must be watched carefully to understand the impact on the portfolio.
Yields have fallen 13 basis points over the past two days as shortsellers scramble for cover.
Tyagi, 58, will also inherit from outgoing SEBI Chairman U.K. Sinha critical regulatory decisions, including whether to penalise India's largest exchange, National Stock Exchange, over potential trading violations and whether to adopt tougher rules against high-frequency traders.
"Benefiting from finer pricing in the bond markets, we expect the year-on-year growth of corporate bonds to remain substantial at 20-22 percent in FY18.
Equity and long bond markets are currently trading at par around 15 times earnings, says Ridham Desai Head of India Equity Research & India Equity Strategist at Morgan Stanley. "If one were bullish on bonds and bearish on equities now is the time to make the swtich," he says in an interview to CNBC-TV18.
Emphasising the need for better coordination among financial regulators globally, Sebi Chairman UK Sinha today said markets have gone beyond the control of policymakers post 2008 credit crisis.
With banks turning stingy in passing on RBI's rate cuts to consumers, rate of home loans has fallen by only 0.26 percentage point since 2015, but corporates have managed to bring down their borrowing cost by 1.44 percentage point by tapping bond markets, as per the central bank.
Motherson Sumi said the proceeds from the issuance and sale of the 2016 Notes will be used to repay existing third party indebtedness and for general corporate purposes, including to make certain capital expenditures.
Foreign Portfolio Investors (FPIs) have turned net buyers of equities in March after pulling out a massive Rs 16,648 crore from the market in the previous two months.
There is a need for investment lift-off and for that to happen, the government will have to mobilise the savings in the economy and make it available to the private sector, says Edward Teather, senior economist Asean & India of UBS Investment Bank
The RBI was estimated to have sold USD 500 million to USD 1 billion on Wednesday to prop up the rupee in the lead-up to the Fed meeting.
The Reserve Bank of India (RBI) is seeking to prevent wild swings in bond markets by agreeing to pay higher interest rates to investors at bond auctions, people with knowledge of the central bank's operations say, while also buying bonds in the open market to stop yields rising too much.
Sameer Goel of Deutsche Bank does not think Raghuram Rajan will close the doors on further rate cuts today but he will not commit to lowering rates going ahead either
The 10-year benchmark yield is likely to trade in a range of 7.73-7.77 percent today, says Ajay Manglunia of Edelweiss.
Ashutosh Khajuria, Federal Bank does not see the RBI intervening if the rupee falls by another half to one percent.
Expect the rupee to trade in a range of 63.80-64.25/dollar today, says Mohan Shenoi of Kotak Mahindra Bank.
The year saw domestic companies tapping the offshore US dollar-denominated bond markets reach a record USD 14.5 billion, up 21.4 percent over USD 12 billion in the previous year, according to the data compiled by Thomson Reuters/ Freeman Consulting.
With volatility coming back into the market and returns going down, investors can look elsewhere â€“ be it within bond markets or some local currency markets, says Steve Brice of Standard Chartered Bank
NS Venkatesh, IDBI Bank says ahead of the upcoming long weekend, traders will try and trim position to avoid any price/weekend risks.