Bond Markets

The regulator plans to create a specialised category of bond distributors, mirroring the mutual fund model, to simplify KYC and transactions for retail debt investors, Sebi whole time member Amarjeet Singh said on Wednesday.

Government bond yields have been rising globally as elevated crude oil prices amid expectations of prolonged US-Iran war raised inflation risks, while the ceasefire reached last week remained fragile.

Bond yields had risen sharply in March since the onset of the US–Iran war, with the benchmark 10-year yield touching a high of 7.13%. However, yields softened across the curve yesterday, amid optimism over the US-Iran ceasefire, alongside a broadly reassuring policy stance from the central bank.

The uptick in bond prices followed a sharp decline in crude oil prices, which helped ease inflationary concerns. The benchmark Brent crude contract was nearly 5% lower at $99.60 per barrel, after falling to an intraday low of $97.15.

Bond yields move inversely to prices, and recent developments in the bond market have led to a sustained upward movement in yields. Meanwhile, the Indian rupee weakened to a fresh record low of 93.94 against the US dollar.

Bond markets are expected to be stable amid the crude oil shock as the RBI and government will work together to minimise the impact by keeping easy liquidity and tapping into their strategic oil reserve, opine experts.

Net inflows in January reached $176 million, compared with withdrawals of $50 million a year ago, according to central bank data compiled by Bloomberg. Short-term bonds with a duration of one year or less drew 85% of these flows.

The Economic Survey 2025-26 highlights a $4 trillion financing gap for climate and sustainable development, particularly affecting developing economies. It emphasizes the need for better funding in critical areas like climate adaptation and urban infrastructure.

LGT Wealth India's CIO of fixed income, Chirag Doshi, shed light on how the Reserve Bank of India ensured resilience in fixed income returns as market sentiment swings between optimism and caution. Here's what the expert says.