Foreigners withdrew money from Asian bond markets for the third consecutive month in June amid concerns that increasing trade frictions between the United States and China will disrupt the region’s economic growth.
Repo platforms launched by leading bourses for tripartite repurchase of corporate bonds is expected to improve liquidity and investor appetite for these securities, which in turn will boost the corporate debt market, said a report.
As liquidity still continues to be a problem in the bond market, markets watchdog Sebi today said it will soon come out with a consultation paper on developing a robust secondary market for the debt market.
To deepen the bond markets, regulator Sebi has proposed a uniform methodology to determine pricing of non-traded and thinly traded non-convertible debt securities.
The govt has a comfortable cash position to tide over any short-term challenges that its market borrowing programme encounters, a senior finance ministry official said.
The SSE has introduced new temporary rules governing tri-party “pledge-style” bond repurchase agreements in what it says is a move to further develop China’s bond market.
Markets regulator Sebi has re- constituted its committee that suggests roadmap for developing corporate bond market in the country.
Euro zone sentiment fell as expected for the 2nd month in a row in February from a multi-year high as confidence sapped from every sector except services, the EC said.
German bond yields fell to two-week lows as weaker-than-expected as eased concern that ultra-easy monetary policy in the bloc could end sooner rather than later.
Bankers said they anticipated status quo in RBI policy but expect its positive impact on bond market as inflation is likely to ease in the second half of the next fiscal.