India Business News: Compounding the woes in the bond market, government securities (G-Secs) worth about Rs 25,000 crore, out of the Rs 31,000 crore put on auction this we
Demand for higher yield trips another bond sale
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The benchmark yielded 6.14 percent Thursday versus 6.03 percent a day earlier. The central bank was aiming to borrow Rs 31,000 crore through a primary auction against which it ended up raising a little more than Rs 6,000 crore.
The benchmark yield surged 11 basis points Thursday, mimicking the recent hardening of rates in the US.
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MUMBAI: The Reserve Bank of India (RBI) could not find takers for about Rs 25,000 crore of government bonds at reasonable rates as bidders demanded higher yields, pointing to the challenges North Block’s principal money manager faces in preventing a spiral in debt costs.
Updated Feb 16, 2021 | 08:26 IST
The RBI has recently allowed direct access in G-secs to retail investors. However, more operational clarity will emerge in the days to come. Investing in government securities: Do they suit your financial goals?
Government Securities (G-Secs) are one of the safest investing instruments available in the market. They are issued and backed by the central or state governments. So, they don t carry any default risk. This sovereign guarantee makes G-secs highly attractive for risk-averse investors. But because of the low risks, government securities offer low returns.
Earlier, retail investors were not allowed to participate directly to invest in the G-secs market and couldn’t open a gilt account which is used to hold the G-secs. However, Reserve Bank of India Governor Shaktikanta Das announced on February 5 that the government will permit retail investors to access the G-secs directly through a dedicated portal named ‘
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Updated Feb 08, 2021 | 06:13 IST
The RBI has announced that it will provide a facility that will allow retail investors to open a gilt account for investing with the RBI Want to invest in government securities? All you need to know before investing
New Delhi: The RBI has opened its doors to retail investors to buy and sell government securities directly from them. The RBI has announced that it will provide a facility that will allow retail investors to open a gilt account for investing with the RBI. The G-SEC market is a complex one depending on a lot of variables like macro-environment, interest rate, etc. But buying government Security has the biggest advantage of the safety of capital and return.