India Fixed Income Data Bank
(This is for information and educational purposes only. This should not be
construed as a recommendation or investment advice even though the author is a CFA
Charterholder. Please consult your financial adviser before taking any
investment decision. Safe to assume the author has a vested interest in stocks
/ investments discussed if any.)
This
is a data bank related to fixed income products in India. The topics covered here are: Debt mutual funds including liquid mutual funds, hybrid mutual funds, sovereign gold bonds (SGBs), retirement schemes, Government of India's small savings schemes (Post Office schemes) like, PPF, NSC, SCSS, SSY and others, bank fixed deposits, corporate bonds and others.
Sources of information for the data bank and India-based Fintech apps for fixed income products are given at the end of the blog.
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Related blogs on India Data:
India Forex Data Bank
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This is a typical list of topics:
|
Bank fixed deposits |
|
Corporate bonds |
|
Debt mutual funds |
|
Hybrid funds |
|
Inflation indexed bonds (IIBs) |
|
Liquid mutual funds |
|
Gilt funds |
|
National Savings Certificate (NSC) |
|
Public Provident Fund (PPF) |
|
Senior Citizens Savings Scheme (SCSS) |
|
Sukanya Samriddhi Yojana (SSY) |
|
Small savings schemes |
The author has over the years written various blogs on fixed income / debt financial products, including debt mutual funds, gilt funds, liquid mutual funds, floating rate bonds, small savings schemes, Public Provident Fund (PPF) and so on.
The articles on these subjects can be found here: Blog of Blogs Theme-wise under the topic Fixed Income / Debt.
The blog will be updated periodically with new data exhibits and charts. Newer updates will be at the top. This will enable readers to access all the related data at one place.
Brief
notes and relevant blog weblinks, if any, will be added along with the
data. You can click on the data exhibits for a better view.
- - -
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India Floating Rate Bonds (FRBs): (Old blog India Public Debt and Floating Rate Bonds 29Oct2023) The
coupon rates set at half-yearly intervals on FRBs are a pointer to the
interest rate environment in the country. As can be seen from the below
image, coupon rates of FRBs have been declining since the beginning of
2024 -- indicating an easing interest rate scenario in India.
Update 07Dec2024: Chart 9:
Major
central banks, including the Fed, ECB (European Central Bank) and Bank
of England have been reducing interest rates in recent months. Only
Japanese central bank is on a path of rate increases.
But
during the MPC (Monetary Policy Committee) meeting on 06Dec2024, RBI
decided to keep the benchmark repo rate unchanged, but reduced the cash reserve ratio (CRR) from 4.50 per cent to 4.00 per cent.
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India Floating Rate Bonds (FRBs): (Old blog India Public Debt and Floating Rate Bonds 29Oct2023) The
coupon rates set at half-yearly intervals on FRBs are a pointer to the
interest rate environment in the country. As can be seen from the below
image, coupon rates of FRBs have been declining since the beginning of
2024 -- indicating an easing interest rate scenario in India.
Update 01Nov2024: Chart 8:
Major
central banks, including the Fed, ECB (European Central Bank) and Bank
of England have been reducing interest rates in recent months. Only
Japanese central bank is on a path of rate increases.
But during the MPC (Monetary Policy Committee) meeting on 09Oct2024, RBI decided to keep the benchmark repo rate unchanged, while changing the monetary policy stance to 'neutral' from earlier 'withdrawal of accommodation.'
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RBI Issues New 10-Year G-Sec Paper: (Old blog dated 15Jan2022 on New 10-Year G-Sec Instruments)
Update 04Oct2024: Chart 7:
Reserve Bank of India (RBI), India's central bank, issued a new 10-year G-Sec instrument through a government security auction on 04Oct2024. The effective date of this new G-Sec paper will be Monday, 07Oct2024 and this 10-year paper will mature on 07Oct2034.
The new 10-year government bond is 6.79% GS 2034 (please note in the image below it is wrongly mentioned as 6.78% GS 2034).
Historical data of all new 10-year G-Sec instruments issued since 2020 >
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India Floating Rate Bonds (FRBs): (Old blog India Public Debt and Floating Rate Bonds 29Oct2023) The
coupon rates set at half-yearly intervals on FRBs are a pointer to the
interest rate environment in the country. As can be seen from the below
image, coupon rates of FRBs have been declining since the beginning of
2024 -- indicating an easing interest rate scenario in India.
Update 03Oct2024: Chart 6:
Ahead of the RBI MPC (monetary policy committee) meeting, short-term interest rates as reflected in FRBs are showing a downward rate path. On October 9th, RBI's MPC will decide on whether to cut RBI repo rate.
Major central banks, including the Fed, ECB (European Central Bank) and Bank of England have been reducing interest rates in recent months. Only Japanese central bank is on a path of rate increases.
RBI today declared the coupon rate, for the next six months, for the FRB 2028 at 7.30 per cent, including a fixed spread of 64 basis points (one percentage point equals 100 basis points).
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Update 22Sep2024: Charts 4 and 5:
As on date, there are six Floating Rate Bond (FRB) issues outstanding. FRBs are issued by Government of India as part its market borrowing programme.
The total outstanding amount of the six FRBs as on 17Sep2024 is Rs 4.09 lakh crore, which is just 3.8 per cent of the total G-Sec outstanding of Rs 107.45 lakh crore.
Total FRBs outstanding was 4.05 per cent of total G-Sec outstanding as on 27Feb2024.
Fixed rate bonds are bonds on which the coupon rate (interest rate) is fixed for the entire life
(that is, till maturity) of the bond (For more on FRBs, please check earlier blog).
FRB coupon rates are reset at half-yearly intervals.
Typically, the coupon rate of an FRB has two components -- consisting of a variable base rate and a fixed spread. The variable base rate is based on a base rate equivalent to the average of the Weighted
Average Yield (WAY) of last three auctions of 182-Day Treasury Bills.
The
spread is fixed for the entire tenure of the bond and is
decided on the eve of its primary auction.
The coupon rates set at half-yearly intervals on FRBs are a pointer to the interest rate environment in the country. As can be seen from the below image, coupon rates of FRBs have been declining since the beginning of 2024 -- indicating an easing interest rate scenario in India.
Charts 4 and 5 >
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Update 21Jul2024: Chart 3:
Fund's quity allocation, modified duration, AUM, expense ratio and exit load in the past three years >
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Update 02Jul2024: Charts 1 and 2:
The coupon / interest rates of these bonds are reset every half-year on January 1st and July 1st of every year and are linked, with a positive spread of 35 basis points (one percentage point equals 100 basis points), over the interest rate on 5-year National Savings Certificate (NSC) issued by India Post Office.
The following is a chart containing half-yearly interest rates on FRSB, 2020 (T) since its introduction in Jul2020:
The following is a chart containing the salient features of FRSB, 2020 (T):
-------------------
Sources of information for this India Fixed Income Data Bank:
Reserve Bank of India
Value Research Online
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India-based Fintech apps for fixed income products
Wint Wealth @WintWealth bags online bond platform provider (OBPP) license from SEBI - Fourdegreewater Capital Pvt Ltd - Anshul Gupta
BondsIndia is a SEBI registered OBPP (Launchpad Fintech Pvt Ltd)
IndiaBonds is a SEBI registered OBPP (India Bond Pvt Ltd)
Grip Broking Pvt Ltd is a SEBI registered OBPP
GoldenPi Securities Pvt Ltd is a SEBI registered OBPP (GoldenPi Technologies Pvt Ltd is the holding company of GoldenPi Securities Pvt Ltd)
StableMoney (bank fixed deposits)
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Related Blog on Fixed Income:
Indian Economy Data Bank 13Jun2024
Mutual Fund Asset Class Returns 31Mar2024
Gilt Funds Worth Considering 14Apr2024
Analysis of Small Savings Schemes and Interest Rates (India Gazette Notification 12Dec2019) 09Nov2023
Understanding Floating Rate Savings Bonds 2020 (Taxable) 05May2023 - FRSB
The Scourge of Negative Real Interest Rates Continues 02Apr2023
Negative Impact of Debt Mutual Fund Tax Changes (quixotic changes by PM Modi government) MF tax rates 25Mar2023
How Rates and Ratios are Moving 26May2022
Saver's curse: Low Savings Rates and Liquid Mutual Fund Returns 10Dec2021
Inflation Indexed Bonds (IIB) 05Oct2011
My Tweets (X Posts):
Tweet (Post X) thread 02Jun2024 - India Fixed Income Data Bank
The Reference Shelf:
Top image: AI-image from Google Gemini
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Disclosure: I've got a vested interest in Indian stocks and other investments. It's safe to assume I've interest in the financial instruments / products discussed, if any.
Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets.
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