Bonds news & headlines
Latest breaking stories, features and analysis
- China's first direct bond sale in the U.S. attracted huge demand, helping government to raise $6 billion
- Today’s low of 95.52 represents the lowest yield since April 2017
- International investors have so far under-invested in the Chinese domestic bond market
Features & analysis
Latest Bonds news
In 1980, sponsors of China’s Yizheng Chemical Fibers needed capital to create a large-scale chemical fiber plant. Government-owned institutions were unable to assist. Having nowhere to turn onshore, Yizheng issued bonds worth 50 million USD overseas to raise funds, becoming the first Chinese enterprise in the modern era to enter the international bond market. Almost forty years now, and issuers in China don’t have a project offshore t...
Yields on Chinese 10-year government bonds have returned to trade above 3%. Separately, FTSE Russell is set to include additional Chinese government debt securities in its key indexes. Fundamental analysis: New inclusions to be made FTSE Russell is looking to broaden Chinese government debt to its key indexes, a decision that could result in over $100 billion of new foreign capital. The move would push markets in China even more into the ma...
Malaysian bonds have been top performers in this quarter in the Asian market, thanks to the succession of interest rate cuts. But deflation, diminishing expectations for yet another interest-rate cut, and an uncertain economy mean that there is more to come. Senior rates strategist at Australia & New Zealand Banking Group Ltd in Singapore stated in a research note: “We expect bond yields to have seen their lows this year. Malaysia’s political...
Thailand’s Central Bank recently stated that it successfully sold 50 billion baht ($1.6 billion) on Friday, in government savings bonds that leveraged blockchain technology. The project focuses on enabling investors to receive bonds faster and reduce operating costs when issuing bonds. The bank of Thailand new scripless bonds Through an official press release, Thailand’s Central Bank said the platform known as DLT Scripless Bond Project is a coll...
The European Commission prepares to issue green bonds for the first time, as investors and politicians ask Brussels to increase sustainable debt as part of its €750 billion borrowing splurges to fund Europe’s economic recovery from Coronavirus. The commissioner for the EU budget, Johannes Hahn, told Financial Times that Brussels is “exploring the possibility” of selling sustainable bonds which is part of the unrivaled debt-rising exercise likely...
Japanese bond fund reduces U.S treasury holdings ahead of the forthcoming presidential elections in the United States. Before now, the Federal Reserve promised to keep rates low for longer, diminishing returns, but November presidential elections give Japanese investors another reason to avoid treasury holdings. The chief executive chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co. Tatsuya Higuchi stated: “Markets can become unstab...
Eurozone bonds yield dipped from recent highs in early trade on Tuesday, 1 September 2020; it follows Germany’s reading for August. According to Reuters’ poll, the information showed an inflation reading with just a decline of about 0.2%, although we could see more dip into the negative territory. The data followed Germany’s reading on Monday, and it showed consumer prices declining for the first time in more than four years, which spurred a litt...
The Reserve Bank of India (RBI) hastened the speed for investors to invest in the sixth tranche of the sovereign bond. The move comes a few days after RBI began its Special Market Operation of simultaneous purchase and sale of the Government’s securities. The sale of gold by RBI opens on Monday (today) and ends on the 4th of September. The India Bullion and Jewelers Association stated that the bond’s nominal price solely relies on the simple aver...
The Asian Development Bank (ADB) recently issued offshore Pakistan rupee-linked bonds worth $200 million. According to the Bank, the rupee-linked bond will be for international investors to support Pakistan’s local currency and capital market. ADB tweeted: “ADB will issue bonds denominated in Pakistani rupee up to a value of $200 million equivalent to support local currency operations and develop capital markets. Pakistan approved ADB’s issuance...
This Wednesday, India’s Reserve Bank stated that it would buy and purchase longer tenor-bonds through two tranches in two special operations. Following the announcement, yields on 5.79% 2030 bonds moved up to 6.16% by seven basis points. It’s essential to know that the latest benchmark 5.77% 2030 debt decreased by four basis points before moving up by 30 basis points in the past three weeks. The Central Bank bought 100 billion rupees ($1.3 billio...
Minereum recently launched a new crypto bond to its community that ensures investors get up to 50% yield annually. Minereum, the first self-mining smart contract, launched this new offer in the Defi space, where traditional bonds – considered to be among the safest securities – will no longer be dependent on centralized issuers such as banks, municipalities, but pioneered by indubitable software code. Minereum offers users the ability to mine wit...
The Reserve Bank of India declared on Tuesday that it would simultaneously buy and purchase longer tenor bonds through two tranches in two special open market operations (OMOs) on the 27th of August, 2020, and 3rd of September, 2020. Amid the move, India traders weren’t impressed and say the Bank has to do more to assure investors. Indian government bond yields decreased shortly after the announcement of the special OMOs worth 200 billion rupees...
Germany launched its first “green” bond placing, which has the same coupon as conventional federal securities to sustain renewable energy and clean transport systems. The German government announced late last year about its intention to launch the bonds in the second half of 2020 in a bid to foster the country’s fight against climate change. Through its finance ministry, the government would gather up to $13 billion in 2020 to support the “green”...
According to Michael Schumacher, Managing Director of the leading American multinational financial services firm Wells Fargo, the dollar will lose its value further. Whereas, he predicts bond will strengthen. Schumacher blames the most recent decision by the Federal Reserve on interest rates alongside its dovish stand for the weakening trend of the dollar. Wells Fargo’s MD refers to the fiscal stimulus and massive monetary outlined to mitig...
Ares Australia Management (“AAM”), a joint venture between Fidante Partners and Ares Management Corporation (NYSE: ARES) has launched its first product in Australia, the Ares Global Credit Income Fund. AAM developed the Fund owing to a growing demand for an investment approach that offers high-income generation while preserving capital especially during these uncertain times when many businesses continue to register low returns. Teiki Benveniste,...
It’s close to two months now since the Fed stepped up efforts to boost the economy by pledging to establish a first of its kind entity to purchase ETFs and corporate bonds. Junk bond ETFs and junk bonds were later added to that list the by the US central bank. The impact of the Fed’s promise on the American borrowing markets was profound. Troubled companies such as Boeing (NYSE: BA), Carnival (OTCMKTS: CUKPF) and Ford (NYSE: F) have been able to...
Over the last couple of weeks, the bond market has undergone dramatic changes most triggered by the Coronavirus pandemic. Private and state support has been instrumental in keeping the market afloat, and the efforts seem to be bearing fruits. Fixed income earners looking to invest in corporate bonds are set to enjoy a recent easing program by the Federal Reserve Bank. Boeing (NYSE: BA), America’s largest aeroplane manufacturer has already reporte...