NaBFID is ramping up derivatives to protect margins against falling interest rates

The move reflects rising volatility in India’s bond market and highlights how the state-backed lender is preparing for interest rate swings as infrastructure lending accelerates. India’s top lender is encouraging the use of derivatives as falling interest rates squeeze margins, according to people familiar with the matter. The National Bank for the Financing of Infrastructure […]

RBI’s dovish stance softens yields, but longer-term pressure remains: Fixed Income Outlook October 2025

The Indian bond market witnessed a nuanced shift in October, with yields falling across most maturities, even as the longer end of the curve remained under pressure. According to Puneet Pal, head of fixed income at PGIM India Mutual Fund, the Reserve Bank of India’s unexpectedly dovish tone at the October 1 MPC meeting played […]

RBI allows participants to use municipal bonds as collateral in overnight repo transactions

The Reserve Bank of India (RBI) has allowed money market participants to pledge municipal bonds for borrowing in the overnight market under repo operations (Repo), the regulator said on Tuesday.Unlisted companies holding government securities will also be considered eligible participants for repo transactions, the RBI said. “Eligible participants include all unlisted companies having special securities […]

Bond yields steady as RBI holds rates steady; construction strategies preferred to continue: Devang Shah

The Indian bond market remained largely within the range through September 2025, with 10-year government bond yields rising marginally by four basis points to 6.57%. In contrast, US Treasury yields fell, with the 10-year yield ending the month at 4.15%, following the US Federal Reserve’s 25 basis point rate cut – the first since December […]