While bond yields tend to fall amid low inflation & interest rate cuts, market experts say they’ve been rising due to concerns over tax collections, fiscal deficit & potential impact of US tariffs.
Inclusion of Indian bonds on J.P. Morgan’s emerging markets index may lead to more foreign investment & lower borrowing cost. Dollar inflows could imply rupee appreciation & higher liquidity.
It will attract more foreign funds and support diversification of investor base. Continued focus on macro-stability and fiscal prudence will be crucial to navigate associated challenges.
JP Morgan included Indian bonds in its widely-tracked emerging markets bond index, exposing them to foreign investors. Finance Ministry officials and market analysts both lauded move.
PineBridge Investments and Lombard Odier expect bonds to decline after budget didn’t address tax changes needed for sovereign debt to be listed on the Euroclear platform.
Amid a cash crunch due to Covid-19, states have been forced to borrow at a rate at least 1.3 percentage points higher than the rate at which RBI lends to banks.
The financialisation of Indian household savings is one of the most important economic shifts of the past decade. But financialisation without international diversification creates fragile balance sheets.
The Nirouyeh Vijeh Pasdaran Velayat, or NOPO, was the only force Ali Khamenei trusted.It was founded in 1991 and is more feared than the Revolutionary Guards.
Rating democracies is a tricky business. I am only using the simple metric of who in the Indian subcontinent has had the most peaceful, stable, normal political transitions and continuity.
COMMENTS