Harmoney

Harmoney proudly presents the Fixed-Income Innovation Forum 2025. An exclusive invite-only event bringing together industry leaders to explore emerging trends, opportunities, and challenges shaping India’s fixed-income landscape. As the market undergoes significant transformation driven by technology and digitization, this forum provides a unique opportunity to connect with peers, engage with key stakeholders, and gain invaluable insights into its future trajectory. • Date: 9 January, 2025 • Venue: MCA, Mumbai • Time: 4:00 PM onward Request an invite: [email protected] Aditya Mehta, CFA | Omkar Ghaisas, CFA | Amal Dani, CFA | Manoj Rane | Thomas Thees #Harmoney #FixedIncomeInnovationForum2025 #Digitization #FinTechInnovation

Bond market recap: 13 December Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: •⁠ ⁠Government bond yields rose on Thursday as traders offloaded holdings ahead of Friday's bond auction, aiming to buy back securities at lower prices. November CPI met expectations and had minimal impact on gilt movements. The 10-year benchmark bond yield ended at 6.74%, up from 6.72% on Wednesday. Market turnover rose to ₹403.25 billion from ₹339.30 billion. •⁠ ⁠The interbank call money rate closed below RBI's standing deposit facility rate of 6.25% on Thursday as banks' demand for funds eased towards the end of the trading session. The one-day call money rate fell to 5.75% from 6.75%. The weighted average call rate also fell to 6.62% from 6.70%. •⁠ ⁠US treasury yields rose to a three-week high as investors considered a higher-than-expected November producer price index. November CPI met expectations, boosting bets of a Federal Reserve interest rate drop next week. The 10-year benchmark note rose 6.3 basis points to 4.334% from 4.271% Wednesday. The 2-year notes gained more than 4 basis points to 4.199%. Know more: https://lnkd.in/dzQzTUYF #Harmoney #HarmoneyNewsletter #MarketTrends

Bond market recap: 12 December Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: • Government bond yields rose on Wednesday as traders were disappointed by remarks from the newly appointed RBI Governor. Additionally, a rise in the US treasury yields and caution ahead of the US CPI data contributed to market volatility and subdued trade volumes. The 10-year benchmark bond yield closed at 6.72%, up from 6.71% on Tuesday. Market turnover dropped significantly to ₹344.55 billion from ₹601.80 billion the previous day. • The call rate closed at RBI's marginal standing facility rate of 6.75%, driven by strong demand for funds from banks as liquidity tightened due to RBI delivering dollars against its outstanding forward contract sales. The weighted average call rate stood at 6.70%, slightly up from 6.67% the previous day. • US treasury yields climbed after the US Treasury Department liquidated long-dated supply, and data revealed a growing US budget deficit. The 10-year benchmark note yield jumped 5.2 basis points to 4.273% from 4.221% Tuesday. Know more: https://lnkd.in/dZEvzVmF #Harmoney #HarmoneyNewsletter #MarketTrends

Bond market recap: 11 December Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: • Government bond yields edged lower on Tuesday based on expectations that the new RBI governor would lean on rate cuts starting in February. But profit sales lifted the yields from the day's lows following an intraday rise in treasury yields. The 10-year benchmark bond yield closed at 6.71%, down from 6.72% the previous day. Market turnover rose to ₹601.80 billion from ₹461.85 billion previously. • The call rate closed near RBI's marginal standing facility rate of 6.75%, driven by strong demand for funds as the liquidity surplus continued to narrow. The one-day call money rate closed at 6.74%, significantly higher than the previous 5.75%. The weighted average call rate also rose to 6.67%, up from its previous 6.56%, reflecting rightening conditions in the money market. • US treasury yields rose on Tuesday ahead of the US inflation data release and after a report on US small business confidence reached a 3.5-year high for November. Investors will keenly monitor Wednesday's CPI report for clues on the future of US inflation and subsequent Federal Reserve policy. The 10-year benchmark note yield rose 3.1 basis points to 4.23% from 4.199% on Monday. Know more: https://lnkd.in/dZtBW6tb #Harmoney #HarmoneyNewsletter #MarketTrends

Bond market recap: 10 December Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: •⁠ ⁠Government bond yields dropped significantly on Monday as traders took advantage of attractive prices following Friday's steep decline while preparing for potential interest rate cuts in the coming months. The 10-year benchmark bond yield fell to 6.72% from 6.74% in the previous close. Market turnover was notably lower at ₹461.85 billion, compared to the previous ₹863.05 billion. •⁠ ⁠The call rate fell below RBI's standing deposit facility rate of 6.25% on Monday as banks' demand for funds eased in the latter part of the trade. The one-day call money rate closed at 5.75%, compared to the previous 6.00%. The weighted average call rate settled at 6.65%, down from 6.15%. •⁠ ⁠US Treasury yields rose as investors waited to see if persistently high price pressures could derail expectations of a 25 basis point rate cut by the Federal Reserve next week. The 10-year benchmark note yield increased 5 basis points to 4.203% from 4.153% Friday. Know more: https://lnkd.in/dP5qU6wt #Harmoney #HarmoneyNewsletter #MarketTrends

Bond market recap: quick highlights from last week and the week ahead. • ⁠Government bond yields were steady week on week. The 10-year benchmark bond yield rose 4 basis points to 6.7214% after RBI reduced banks' cash reserve ratio by 50 basis points to 4% on Friday. This week, foreign investors are expected to sell domestic bonds following RBI's MPC decision on Friday to hold interest rates steady. Today, the 6.79% 2034 bond will yield 6.72-6.80%. • Corporate bond yields increased by 3-4 basis points across tenures tracking government bonds following RBI's decision to maintain its benchmark interest rate at 6.50%. Last week, trade volume was low as investors avoided taking fresh bets before the monetary policy announcement. This week, it is expected to be modest as investors await the announcement of the new RBI governor. • ⁠The interbank call money rate eased on Saturday to below RBI's standing deposit facility rate of 6.25% at 6.00% amid low demand for funds from banks. It is likely to open higher than the 6.50% repo rate as banks' demand for cash is expected to grow in early trading today. Today, the call rate will likely trade between 6.00% and 6.75%. Read more: https://lnkd.in/dU8vYvYK #Harmoney #HarmoneyNewsletter #MarketTrends

Bond market recap: 6 December Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: • Government bond yields dipped slightly on foreign inflows and hopes of a softer RBI policy. The 10-year bond yield closed at 6.68%, unchanged from the previous day, with turnover falling to ₹506.80 billion from ₹902.45 billion. • The one-day call money rate rose to 6.70% on Thursday from 6.40% on Wednesday, nearing RBI's marginal standing facility rate of 6.75% amid tighter liquidity. The weighted average rate increased to 6.59% from 6.42%. • US treasury yields were mostly flat as investors digested slightly higher jobless claims data. The 10-year benchmark treasury yield fell 2 basis points on Thursday to 4.182%. Know more: https://lnkd.in/gThM9gqW #Harmoney #HarmoneyNewsletter #MarketTrends 

Why Didn’t RBI’s Green Bonds Attract Investors? Green bonds are changing the way we fund environmentally impactful projects. Globally, the market is on the rise - since the first issue in 2007, the market grew slowly for nearly a decade and then took off.  In 2024, the annual issuance of GSSSB (green, social, sustainability, and sustainability-linked bonds) could hit $1.05 trillion. But what are green bonds? Green bonds are like regular bonds, specifically issued to finance projects with positive environmental impact, such as renewable energy and green buildings. High-income countries have historically dominated the GSSSB market, but S&P Global predicts middle- and low-income countries may begin to increase their presence in 2024 to meet their funding needs. So, what does this market look like in India? Last week, RBI received bids for only a third of the ₹5,000 crore green sovereign bonds issued. The lukewarm response highlights three challenges: Lack of Incentive: The lack of interest from Indian investors stems from the lack of incentives, like policy support or tax benefits, that can make them overlook the lower yields and illiquidity of green bonds. Earlier investors were willing to accept a lower yield for green and blue bonds, but this year, enthusiasm for the same is much lesser. Lack of Green Premium:  Investors did not offer a "greenium" or a premium for the environmental benefits of the bond, which made the bonds less attractive than G-Secs. Illiquidity: Small issuance sizes and limited trading activity in the secondary market made the bonds less appealing to investors. In comparison, G-Secs offers superior liquidity, further reducing the attractiveness of these bonds. Despite these challenges, companies and municipalities are exploring these bonds to fund projects like green energy and drinking water at preferred rates. Moreover, carbon trading and green bond regulators are also in the works, reportedly. Developing the green bond market will go a long way to help India raise lower-cost funds to support financing within India. #GreenBonds #SustainableFinance #GSSSB #BondMarket

Bond market recap: 5 December Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: • Government bond yields fell on Wednesday as expectations of a rate cut by RBI's MPC solidified, prompting traders to bolster their portfolios ahead of the meeting. The 10-year benchmark bond yield fell to 6.68% from 6.71% the previous day, marking its lowest since February 14, 2022. Market turnover rose to ₹904.20 billion from ₹601.15 billion on Tuesday. • The one-day call money rate closed below RBI's repo rate of 6.50% on Wednesday, reflecting reduced demand for funds amid a liquidity surplus of ₹1 trillion on Tuesday, reportedly. The rate settled at 6.40%, down from 6.45% the previous day. • US treasury yields fell after Federal Reserve Chair Jerome Powell stated that the recent economic momentum will allow the central bank to "be a little more cautious as we try to find neutral" with interest rate policy. The 10-year benchmark note yield declined 3.3 basis points to 4.188% from 4.221% on Tuesday. Know more: https://lnkd.in/dEjtKk5X #Harmoney #HarmoneyNewsletter #MarketTrends

Bond market recap: 4 December Stay up-to-date with Harmoney’s Daily Newsletter. Here are quick highlights: • Government bond yields remained steady on Tuesday, with short-term bonds closing on a positive note amid expectations that RBI might introduce measures to ease liquidity at its policy review on Friday. The 10-year benchmark bond yield ended unchanged from the previous close at 6.71%. Market turnover fell to ₹605.30 billion from ₹801.55. • The one-day call money rate settled below RBI's repo rate of 6.50%, reflecting subdued demand for funds as liquidity shifted to a surplus. The call rate closed at 6.45%, up from 6.00% the previous day. The weighted average call rate stood at 6.44%, slightly lower than the previous close of 6.52%. • The benchmark US treasury yields rose after the JOLTS report as investors predict a 25 basis point rate at the Fed's Dec. 17-18 policy meeting. The 10-year note yield jumped 4 basis points to 4.234% on Tuesday from 4.194% on Monday. Know more: https://lnkd.in/dwq2wMZc #Harmoney #HarmoneyNewsletter #MarketTrends