Analysts say reprieve in Indian bonds may be short-lived as traders are worried about the unprecedented bond sales of about ₹15 trillion for the fiscal year starting April
A loss-making trade between Indian bonds and swaps may finally turn profitable, according to Societe Generale.
Buying overnight indexed swaps to hedge India bond risk was termed a “widow-making trade” for most of the three years to early 2020, Kiyong Seong, a rates strategist wrote in a note. That’s because interest rate derivatives outperformed government paper amid easy monetary conditions.
However, swap rates have been on an uptrend since the second half of last year. Heavy government borrowing announced in the budget last week and disappointment over the Reserve Bank of India’s support measures have further narrowed the spread between 10-year sovereign debt and five-year onshore overnight indexed swaps to 89 basis points from 125 basis points in end-2020.
When Rajesh Khanna was roped in to play desi James Bond
In 1974, Bollywood s reigning superstar Rajesh Khanna was roped in to play the role of the Indian Bond in Narendra Bedi s film 007, which was shelved after a few days of shooting. Updated: December 29, 2020 1:15:34 pm
Rajesh Khanna was once signed on to play Indian James Bond. (Photo: Cinema Rare/Twitter)
Hindi cinema has always been fascinated with James Bond so even though we never had our own 007, we surely tried to spin different versions of the character over the decades. In 1974, Bollywood’s reigning superstar Rajesh Khanna was roped in to play the role of the Indian Bond in Narendra Bedi’s film 007, which was shelved after a few days of shooting.