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India's yield curve has been nearly flat even amid record borrowing by the government as insurers stepped up purchases of long-term bonds. (Bloomberg) -- India's auction of the debut 50-year bond met with strong demand Friday, underscoring growing interest from insurance and pension funds for ultra-long papers. [Extracted from the article]

The Reserve Bank of India in September said it plans to add the 50-year bond in response to market demand for ultra-long papers, extending the nation's yield curve. The nation's burgeoning life insurance and pension fund industries, driven by an expanding middle class, are changing the landscape for India's $1 trillion sovereign debt market. [Extracted from the article]

SBI Pension Funds Pvt., which manages $50 billion in assets, is considering investing in corporate and state debt due to the narrowing spreads on longer-maturity Indian government bonds. The fund's chief investment officer, Sandeep Pandey, expressed concern that the lack of term premium for longer-dated securities could impact returns for subscribers. Demand for longer-tenor papers has increased, leading to a compression in the spread between 10-year and 30-year bonds. The fund currently holds a portfolio of about one trillion rupees in corporate paper and 2.5 trillion rupees in sovereign and state debt. [Extracted from the article]

SBI Pension Funds Pvt., which manages $50 billion in assets, is considering investing in corporate and state debt due to the narrowing spreads on longer-maturity Indian government bonds. The demand for longer-tenor papers has increased, leading to a compression in the spread between 10-year and 30-year bonds. The fund is also positioning for a rate cut and expects the central bank to cut interest rates by September. [Extracted from the article]

South Africa has announced plans to tap into the central bank's contingency reserves in order to lower the government's debt trajectory and borrowing requirements. This move has led to a strengthening of the rand and a drop in local bond yields. By using funds from the Gold and Foreign Exchange Contingency Reserve Account, the government aims to decrease the amount of debt auctioned at weekly sales and borrow less to fund deficits. However, there are concerns that this decision may leave the country more vulnerable to future shocks. [Extracted from the article]

Foreign investors can buy India's green bonds through the Fully Accessible Route, one of the people said. A Federal Reserve paper this year found green bonds have a yield spread that is eight basis points lower on average relative to conventional bonds. (Bloomberg) -- Reserve Bank of India, the nation's debt manager, is preparing to sell its first ever batch of sovereign green bonds as early as next month, according to people with knowledge of the matter. [Extracted from the article]

The focus now turns to the nation's debt negotiations with holders of its foreign debt, including creditors such as China and India. (Bloomberg) -- Sri Lanka accepted almost all of the offers to exchange defaulted local debt for new bonds, putting the nation closer to its goal of completing its debt restructuring this year. [Extracted from the article]

The nation's sovereign bonds sold off Wednesday, after the Reserve Bank of New Zealand raised interest rates by a record 75 basis points and signaled more tightening. (Bloomberg) -- New Zealand central bank's record interest-rate hike is a warning to investors that the global tightening cycle may be far from over, according to HSBC Holdings Plc. [Extracted from the article]

(Bloomberg) -- The UK's pension sector created the modern gilt market. "Although the BOE interventions this week have served to calm markets and regain a sense of composure, I don't think it materially alters the net supply outlook, which is really the driving force behind higher yields.". [Extracted from the article]

The UK's green bond sale has already pulled in more than £24 billion ($25.7 billion) of orders as investors snap up yields at their highest since 1998 amid a market meltdown. IMF Tells UK to Rethink Tax Cuts as Moody's Says Rating at Risk The new sale is for green bonds, which fund environmental projects and typically pull in strong demand thanks to interest from specialist ethical funds. [Extracted from the article]

2539Z@GR, ALLTOP, BON, BUSINESS, ECB, EUROPE, EURTOP, FRX, GLOBALMACR, GOV, MARKETS, WORLD, WWTOP, WWTOPEU Keywords: 2539Z@GR; ALLTOP; BON; BUSINESS; ECB; EUROPE; EURTOP; FRX; GLOBALMACR; GOV; MARKETS; WORLD; WWTOP; WWTOPEU EN 2539Z@GR ALLTOP BON BUSINESS ECB EUROPE EURTOP FRX GLOBALMACR GOV MARKETS WORLD WWTOP WWTOPEU (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. [Extracted from the article]

US Treasuries are returning to their traditional role as a source of income for investors, after years of low interest rates. Last year, investors earned nearly $900 billion in annual interest from US government debt, double the average of the previous decade. The increase in interest rates has also provided better protection for investors against potential losses. The newfound income from Treasuries may be contributing to the resilience of the economy, as it acts like stimulus checks for Americans. The demand for fixed income investments has surged, with money-market funds and bond funds seeing significant inflows. The reset in yields for high-quality debt is expected to have broad implications for various investment firms. While there is no certainty that yields will remain high, factors such as inflation concerns and the US deficit suggest that fixed income will likely remain in demand. [Extracted from the article]

US Treasuries are returning to their traditional role as a source of income for investors, after years of being held hostage by zero-rate policies. Last year, investors earned nearly $900 billion in annual interest from US government debt, double the average of the previous decade. With over 90% of Treasuries carrying coupons of 4% or more, investors are better shielded against any jump in yields. The newfound income from Treasuries may be playing a role in supporting the economy, as it creates a material wealth effect among Americans. Money-market funds and bond funds have seen increased investments, and the amount of debt held by households and non-profits has surged to a record $5.7 trillion. The reset in yields for high-quality debt will have broad implications for various investment firms. Bonds are now considered a "tremendous value" compared to stocks, and there are solid reasons to believe that yields won't revert back to their post-financial-crisis levels even after the Federal Reserve starts cutting rates. Factors such as inflation worries and the massive US deficit are likely to keep yields elevated and maintain demand for fixed income. [Extracted from the article]

The Los Angeles Unified School District (LAUSD) is planning to sell $3 billion of general obligation refunding bonds in order to replace $2.65 billion of taxable Build America Bonds with lower-yielding, tax-exempt securities. This bond sale comes as the district aims to align its spending with declining enrollment. Moody's Ratings recently raised LAUSD's issuer credit rating due to its conservative budgeting practices and efforts to reduce spending in anticipation of future reductions in federal pandemic aid and enrollment. The sale is part of a larger trend of refunding taxable debt with tax-exempt securities. The district has implemented a hiring freeze and is considering school closures or consolidations. Moody's also cited the district's improved general fund balance and efficient operation of individual schools as reasons for the credit rating upgrade. California's high tax rates create a strong demand for tax-exempt debt among wealthy investors. [Extracted from the article]

Global money managers are increasingly investing in Sri Lanka's local-currency government bonds due to optimism surrounding a restructuring deal. JPMorgan Asset Management and T. Rowe Price Group Inc. have both rotated their investments into rupee securities, with JPMorgan stating that a normalization in inflation and stabilization in foreign reserves would be positive for the onshore bond market. Sri Lanka's dollar debt has been performing well, and positive developments such as securing approval for an IMF payout and reaching agreements with China, India, and the Paris Club have boosted sentiment. The yield on local Sri Lankan bonds is currently around 11%, and investors are attracted to the higher yields and potential currency gains in the country. [Extracted from the article]

India plans to sell fewer bonds than initially estimated as the government reins in spending ahead of elections and the inclusion of the nation's debt in global indexes. The finance ministry announced that bonds worth 7.5 trillion rupees ($90 billion) will be sold in the first half of the fiscal year, lower than the 8.5 trillion rupees estimated in a Bloomberg survey. The decision to reduce borrowing is due to the government's desire to avoid sitting on unused cash, according to Finance Secretary TV Somanathan. The sale comes as foreign funds have shown interest in Indian debt ahead of their inclusion in JPMorgan Chase & Co.'s global indexes in June. [Extracted from the article]

State and local government bond yields have reached their lowest levels against Treasuries in nearly three years, indicating a strong demand for tax-exempt securities that has protected them from the bond market selloff. Despite their high valuations, buyers continue to invest in municipal bonds, with deals being oversubscribed by more than five times on average. The demand for tax-exempt income may be driven by the expectation of rising taxes, as President Biden has proposed a budget funded by higher taxes on the wealthy and many states have cut taxes using record surpluses. To see a change in valuations, investors would need to see a shift in the Federal Reserve's rate cuts or a significant increase in issuance. [Extracted from the article]

Bond investors are calling on European Union leaders to establish a permanent trillion-euro bond program to boost defense spending. These bonds would allow for increased spending to counter Russian aggression without burdening individual member states with more debt. Investors are eager for these bonds because they offer higher yields than similarly rated sovereign bonds. The EU already has outstanding bonds, mostly issued for pandemic recovery, and investors believe that the issuance of EU bonds should become a permanent solution. However, some fiscally conservative countries are skeptical and prefer one-off solutions. The outcome of the situation in Ukraine will likely influence the decision. [Extracted from the article]

Bond investors are calling on European Union leaders to establish a permanent trillion-euro bond program to boost defense spending and counter Russian aggression. These bonds would allow for increased spending without adding more debt to individual member states. Investors are eager for these bonds, as they offer higher yields than similarly rated sovereign bonds. While some countries support the idea, others are skeptical and prefer one-off solutions. The success of the proposal may depend on the outcome of the conflict in Ukraine. [Extracted from the article]

Bond investors are calling on European Union leaders to establish a permanent trillion-euro bond program to boost defense spending. These bonds would allow for increased spending to counter Russian aggression without burdening individual member states with more debt. Investors are eager for these bonds because they offer higher yields than similarly rated sovereign bonds. The EU already has outstanding bonds, mostly issued for pandemic recovery, and investors believe that the issuance of EU bonds should become a permanent fixture. However, some fiscally conservative countries are skeptical of this idea. The success of this proposal may depend on the outcome of the conflict in Ukraine. [Extracted from the article]

South Africa has announced that it will tap into its gold and foreign-exchange reserves to reduce its public debt sales. This decision has led to a strengthening of the rand and a drop in local bond yields. The government's move to draw from the central bank will decrease the amount of debt auctioned at weekly sales, providing some relief to local bond markets. However, there are concerns about the potential vulnerability of the country to future shocks by dipping into its reserves. [Extracted from the article]

Stocks and bonds in Asia are rallying as investors anticipate Federal Reserve interest-rate cuts next year. Global bonds, including sovereign debt in Australia and New Zealand, are also experiencing gains. Asian equities are on a four-day climb, with Chinese stocks performing particularly well. Traders are increasingly betting on Fed rate cuts, and the gains in bonds are being driven by strong demand for Treasury notes. The US dollar has dropped against other major currencies, and the yen has gained strength. In corporate news, Apple has won a court ruling temporarily pausing a US sales ban on its smartwatches. Oil prices have declined, while Bitcoin has seen a slight increase. [Extracted from the article]

The article focuses on Brazil's entry into the Environmental, Social, and Governance (ESG) bond market, highlighting the significant demand for its debut ESG bond issued in November 2023. Topics include the potential financial benefits for Brazil and its companies such as lower spreads compared to conventional sovereign debt and the implications for the country's credit rating, with the government aiming to recover investment-grade status by 2026.

The nation's burgeoning life insurance and pension fund industries, driven by an expanding middle class, are changing the landscape for India's $1 trillion sovereign debt market. (Bloomberg) -- India will sell 50-year bonds for the first time, introducing ultra-long maturity debt to cater to the growing demand from insurance and pension funds. The new bond adds to the 30-year and 40-year tenor debt sold, extending the nation's yield curve, according to a borrowing plan released by the Reserve Bank of India on Tuesday. [Extracted from the article]

The new bond adds to the 30-year and 40-year tenor debt sold, extending the nation's yield curve, according to a borrowing plan released by the Reserve Bank of India on Tuesday. (Bloomberg) -- India will sell 50-year bonds for the first time, introducing ultra-long maturity debt to cater to the growing demand from insurance and pension funds. [Extracted from the article]

(Bloomberg) -- Gabon's dollar bonds rebounded from a two-day slump as the country's lowered debt-servicing burden and the European Union's comments on this week's coup helped to calm investors' nerves. Read more: Gabon Coup Tests Two-Week-Old $500 Million BofA Debt Swap The buyback leg of the swap left the country's coupon payments more manageable, Faergemann said. [Extracted from the article]

(Bloomberg) -- Gabon's dollar bonds rebounded from a two-day slump as the country's lowered debt-servicing burden helped to calm investors fretting over this week's military coup. Gabon completed a debt-for-nature swap in mid-August in which it bought back $500 million worth of dollar bonds for $436 million and issued $500 million of fresh debt backed by so-called blue bonds. [Extracted from the article]

Gabon completed a debt-for-nature swap in mid-August in which it bought back $500 million worth of dollar bonds for $436 million and issued $500 million of fresh debt backed by so-called blue bonds. (Bloomberg) -- Gabon's dollar bonds rebounded from a two-day slump as the country's lowered debt-servicing burden helped to calm investors fretting over this week's military coup. [Extracted from the article]

(Bloomberg) -- Kazakh financial firms have been scooping up Russian government debt at a steep discount from investors unable to exit the market because of sanctions and other restrictions imposed after the invasion of Ukraine, according to people familiar with the matter. In Russia, OFZ securities due in 10 years have recovered close to face value, according to data from the Moscow exchange, indicating investors don't expect to suffer losses. [Extracted from the article]

In Russia, OFZ securities due in 10 years have recovered close to face value, according to data from the Moscow exchange, indicating investors don't expect to suffer losses. (Bloomberg) -- Kazakh financial firms have been scooping up Russian government debt at a steep discount from investors unable to exit the market because of sanctions and other restrictions imposed after the invasion of Ukraine, according to people familiar with the matter. [Extracted from the article]

Read the central bank's latest assessment here Dar reiterated that "there's no plan to engage with bondholders across the board" asking them to extend the maturity date for Pakistan's $1 billion global bond due in December. (Bloomberg) -- Pakistan Finance Minister Ishaq Dar said that no specific moves are needed at this point to support the nation's currency, as traders grow confident that the new administration will sort through the nation's monetary challenges. [Extracted from the article]

Shimao Said to Seek ABS Maturity Extension (11:28 a.m. HK) Shimao Group is seeking maturity extension on three asset-backed securities totaling 1.4 billion yuan ($220 million) due this month, according to a report by REDD. (Bloomberg) -- A unit of Shimao Group Holdings Ltd. at the center of a missed loan payment said the incident won't trigger investor demands for accelerated repayment of its debt in public markets. [Extracted from the article]

Shimao Said to Seek ABS Maturity Extension (11:28 a.m. HK) Shimao Group is seeking maturity extension on three asset-backed securities totaling 1.4 billion yuan ($220 million) due this month, according to a report by REDD. (Bloomberg) -- A unit of Shimao Group Holdings Ltd. at the center of a missed loan payment said the incident won't trigger investor demands for accelerated repayment of its debt in public markets. [Extracted from the article]

Shimao Unit Plays Down Impact of Loan Miss (9:46 a.m. HK) A unit of Shimao Group said it hasn't suffered any default in public markets, while its missed loan payment won't trigger demands for accelerated repayment, according to an exchange filing. (Bloomberg) -- A unit of Shimao Group Holdings Ltd. at the center of a missed loan payment said the incident won't trigger investor demands for accelerated repayment of its debt in public markets. [Extracted from the article]

(Bloomberg) -- A unit of Shimao Group Holdings Ltd. at the center of a missed loan payment said the incident won't trigger investor demands for accelerated repayment of its debt in public markets. Key Developments: Shimao Unit Says Trust Matter Won't Spur Early Bond Repayment China Developers' M&A Loans to Be Excluded From Metrics: Cailian Shimao Default Notice Hammers Bonds, Stokes China Property Fear Shimao Pledges 265m Shares of Shanghai-Listed Unit for Loans China Seen Delaying Property Tax Trials Until Market Improves Shimao Unit Plays Down Impact of Loan Miss (9:46 a.m. HK) A unit of Shimao Group said it hasn't suffered any default in public markets, while its missed loan payment won't trigger demands for accelerated repayment, according to an exchange filing. [Extracted from the article]

(Bloomberg) -- Scott Peng knows trouble when he sees it -- and right now he detects it all over markets thanks to an oncoming interest-rate "tsunami." Among the more specialized hedging products are the Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) with $3.6 billion and the $1 billion ProShares Investment Grade-Interest Rate Hedged ETF (IGHG). He's launching the Rising Rate Hedge exchange-traded fund as soon as next week to ride a breakout in bond yields, as market-based measures of inflation jump to the highest in decades. [Extracted from the article]

Using data from 23 advanced and 16 developing markets from 2000 to 2019, the study measures climate change transition risks by carbon dioxide emissions, earnings from natural resources extraction and renewable energy consumption. (Bloomberg) -- Climate risks are already playing a key role in determining the value of government bonds, with developed nations that fall behind on green goals facing higher borrowing costs, new research shows. [Extracted from the article]

(Bloomberg) -- A year after the pandemic forced Brazil to sell almost nothing but short-term debt to nervous investors, Treasury officials have been pushing hard to ratchet back up auctions of long bonds. Investors are also wary of quickening inflation that could bring about higher interest rates and a shift to populism. [Extracted from the article]