India bonds News

The 10-year benchmark bond yield rose 7 basis points to 7.90 percent on Tuesday.

A rally in India`s bond market this month could prove short-lived as investors brace for as much as USD157 billion in sovereign debt sales over the next year, including from states financing a big bailout of electricity utilities, analysts warn.

Companies globally have raised USD 12.9 billion through issue of 'green bonds' in the April-June quarter of 2015 and going ahead more such issuances are likely to come from India, Moody's Investors Service said today.

Government bonds (G-Secs) dropped further on sustained selling pressure from banks and corporates while the overnight call money rate ended higher at the money market due to good demand from borrowing banks amid tight liquidity in the banking system.

The government is planning to introduce long-term bonds of 40 years maturity in the first half of the current fiscal with small issuance size.

Investment limits for government debt securities worth Rs 507 crore will be auctioned on the Bombay Stock Exchange (BSE) on Monday.

Looking to increase fund flows from overseas investors, Sebi on Thursday allowed Foreign Portfolio Investors to invest their coupons received on investments in government securities back into such bonds.