Budget 2020

As bond yields harden, is it the right time to invest in debt funds?

India’s sovereign yield curve has experienced bear steepening since the beginning of 2021. While yields at short-end remained well anchored due to surplus liquidity, yields of benchmark 3-, 5- and 15-year government securities increased between 45 and 60 basis points. However, yield of benchmark 10-year government bond, which is under RBI’s watch, is up by […]

Budget 2020

We will be able to manage the bond yields: Shaktikanta Das

Going forward, digital methods are going to play a major role, but the banking sector will continue to remain relevant and banks have a major role to play, said RBI Governor Shaktikanta Das at the Times Network India Economic Conclave 2021 in a Q&A with Nikunj Dalmia. Edited excerpts: While you have alluded to the […]

Budget 2020

Perpetual bond yields see sharp rise on MF selling

MUMBAI: Monday’s trading session wasn’t for the faint hearted – regardless of asset class. Stocks were roiled for much of the day while bonds – of the perpetual variety – were pummelled, stretching for their investors a nerve-jangling ride that began last week after a regulatory fiat on valuing these debt instruments. On a day […]

Budget 2020

Finance Ministry writes to Sebi, ‘requests’ agency to withdraw perpetual bond rule

The finance ministry “requested” the Securities and Exchange Board of India (Sebi) Friday to withdraw the part of its Wednesday circular that changed the rules followed by mutual funds to value perpetual bonds. The capital market regulator hadn’t responded to the suggestion at press time, but is expected to review the rules before they take […]

Budget 2020

As bond prices surge, should investors be worried?

Rising yields of benchmark government securities across global markets has remained the most discussed subject in recent weeks, triggering concerns not only in bond markets alone but other asset classes as well. The yield of US 10Y treasury has reached a high of 1.6% in March from low of 0.50% last year and an average […]

Budget 2020

All you need to know about corporate bond funds

What are corporate bond funds? A corporate bond is an instrument issued by a company to borrow money from an investor by paying interest, while the principal is to be returned on maturity. Corporate bond funds are debt funds with a regulatory mandate to invest at least 80% of their corpus in companies that carry […]

Budget 2020

Sovereign gold bond price lowest in 10 months; should you subscribe?

NEW DELHI: The series-XII of the sovereign gold bond (SGB) scheme 2020-21 opened for subscription on Monday. The issue comes at a time when gold prices have dropped sharply and are trading near Rs 46,000. Prospective bidders, who intend to subscribe to the scheme, can bid for a minimum of 1 gm of gold at […]