The 10-year government paper auction on Friday (June 28) for ₹20,000 crore received 267 bids worth ₹47,776.500 crore. Its cut-off yield was fixed at 7.0191 per cent. In the secondary market, the 10-year paper yield was hovering around 7 per cent for the better part of the last week.
This auction coincided with India's inclusion in the JPMorgan Government Bond Index-Emerging Markets (GBI-EM) global index suite. Along with the 10-year paper, there was a 40-year bond auction that received 209 bids worth ₹25,570 crore, with a cut-off yield of 7.1004 per cent.
Overall, there was no surprise on Day One of the inclusion - both in terms of bids and yields - although many expected yields to drop as the inclusion in the GBI-EM global index suite is anticipated to increase the demand for bonds, with greater participation of foreign investors. For bonds, yield and prices move in opposite directions; higher demand spikes prices and pushes yields down.
Clearly, the much-celebrated entry into a global bond index has already been factored in. The 10-year yield recently dropped to 6.95 per cent before rising to 7 per cent. Its highest level in the first quarter of the current financial year (April-June 2024) was 7.24 per cent. India will gain a 10 per cent weight in the GBI-EM Global Diversified Index in phases, with 1 per cent added each month, reaching the limit by March 2025.
Launched in June 2005 as the first comprehensive global local emerging markets index, GBI-EM tracks local currency bonds issued by emerging market governments.
Diese Geschichte stammt aus der July 01, 2024-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der July 01, 2024-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
![More women on boards, but top management tally lags global avg](https://reseuro.magzter.com/100x125/articles/18959/1752580/Sk6qVDLnDDdgQoB5i3esys/MORE-WOMEN-ON-BOARDS-BUT-TOP-MANAGEMENT-TALLY-LAGS-GLOBAL-AVG.jpg)
More women on boards, but top management tally lags global avg
The share of women in boards of companies went up from just over 5 per cent in FY14 to nearly 16 per cent in FY23, according to a study by National Council of Applied Economic Research (NCAER).
![RBI looks to ease export, import transaction norms](https://reseuro.magzter.com/100x125/articles/18959/1752580/wCutDAI2gg8KZzOSER2sys/RBI-LOOKS-TO-EASE-EXPORT-IMPORT-TRANSACTION-NORMS.jpg)
RBI looks to ease export, import transaction norms
Grants more autonomy to banks for efficient services to forex customers
![Monsoon covers entire India 6 days in advance: IMD](https://reseuro.magzter.com/100x125/articles/18959/1752580/3hLYzLVU60QNAcMns29sys/MONSOON-COVERS-ENTIRE-INDIA-6-DAYS-IN-ADVANCE-IMD.jpg)
Monsoon covers entire India 6 days in advance: IMD
The southwest monsoon covered the entire country on Tuesday, six days ahead of its normal date, boosting prospects of kharif sowing, the India Meteorological Department (IMD) said.
Component PLI top demand of electronics firms
Manufacturers aim at attracting global value chains, scaling up production
Power sector eyes green policy push, tax breaks
Sector execs expect funding for green hydrogen, offshore wind
![Slower foreign flows keep bond yields steady](https://reseuro.magzter.com/100x125/articles/18959/1752580/5xf1rFbpqBkgcReQ6Sxsys/SLOWER-FOREIGN-FLOWS-KEEP-BOND-YIELDS-STEADY.jpg)
Slower foreign flows keep bond yields steady
Tally after two trading sessions since JPM entry
Heatwave grip on May consumption, base-year effect cool GST growth
The single-digit growth of 7.7 per cent in goods and services tax (GST) collections in June points to the impact of the May heatwave on consumption, coupled with a base year effect, according to analysts.
![Adani Power boosts capacity again, targets 30+ Gw now](https://reseuro.magzter.com/100x125/articles/18959/1752580/P99ol4n5HAa42gqnk7Zsys/ADANI-POWER-BOOSTS-CAPACITY-AGAIN-TARGETS-30-GW-NOW.jpg)
Adani Power boosts capacity again, targets 30+ Gw now
Private power producer Adani Power is ratcheting up its electricity generation capacity to match the country's growing power demand.
![Unacademy hands pink slips to 250 more employees](https://reseuro.magzter.com/100x125/articles/18959/1752580/0V7jiAqQwhnxh1O5MfYsys/UNACADEMY-HANDS-PINK-SLIPS-TO-250-MORE-EMPLOYEES.jpg)
Unacademy hands pink slips to 250 more employees
Edtech firm Unacademy has laid off 250 people across verticals, according to people familiar with the matter, reducing its employee strength by 50 per cent from what it was two years ago.
![₹35K cr Aramco order biggest ever, says L&T](https://reseuro.magzter.com/100x125/articles/18959/1752580/bxL3SyxGcPlxiNkEaW9sys/35K-CR-ARAMCO-ORDER-BIGGEST-EVER-SAYS-LT.jpg)
₹35K cr Aramco order biggest ever, says L&T
Firm clarifies it is part of existing order book, not new