Government bonds surge on talk of joining Indices
- September 19, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Government bonds surge on talk of joining Indices
Subject : Economy
Section: Capital market
Context: G-Secs rally on reports of India joining JP Morgan’s emerging market bond index.
Key Points:
- Government Securities (G-Secs) rallied on Friday on reports that India is tipped to join JP Morgan’s widely tracked emerging-market bond index.
- JPMorgan is sounding out big investors on adding India to its widely tracked emerging-market bond index, setting the stage for tens of billions of dollars of inflows as the country’s domestic market opens up to foreign capital.
- The price of the benchmark 10-year G-Sec (coupon rate: 6.54 per cent) jumped almost 50 paise to close at ₹95.43 (previous close: ₹94.935).
- Yield of this paper declined sharply by about 8 basis points to close at 7.2173 per cent (7.2929 per cent). This paper is the most traded in the G-Sec market.
- Note: Bond prices and yields are inversely co-related and move in opposite directions.
Emerging markets bond index (EMBI)
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