New 10 year benchmark bond not this month

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

 

The new 10- year benchmark government bond is now expected only in June- July, after the new government announces the year's Budget.

Typically, the new benchmark paper is floated in the middle of May. The delay is due to the on going general elections.

Market participants believe there is scope for more issuances in the current 10year bond ( 8.83 per cent 2023), as the outstanding amount is only ₹ 48,000 crore. In 201314, a 10- year benchmark bond (7.16 per cent 2023) was issued on May 17, replaced by the existing 10- year benchmark one on November 25.

The Street also expects the coupon rate in the new 10- year benchmark to be lower than the current bond, as there could be a rally in the bond market if a stable government comes to power. The coupon on the 10- year benchmark gets aligned with the current one's yield, which ended at a seven- week low of 8.74 per cent on Monday, compared with the previous close of 8.81 per cent.

The yield had ended at the same level on March 13. The fall was due to gains in the rupee and expectation of a stable government after the elections.

There will be a few more auctions in the existing 10year benchmark bond. June July is the likely timeline for the new one.

One recommendation of the Urjit Patel committee report on strengthening the monetary policy framework was that open market operations not be used for managing yields on government securities. If the coupon on the new 10- year bond comes lower, it will help to bring down yields, as the existing 10- year bond will become illiquid after issue of the new one.

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Franklin India Bluechip
4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
4. Birla Sun Life Front Line Equity Fund
5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
5. Birla Sun Life Dividend Yield Plus
6. SBI Emerging Businesses Fund
7. HDFC Mid-Cap Opportunities Fund
8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund

2.Franklin India Smaller Companies

E. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund
4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF