Curriculum Bonds and the Bond Market in India
Bonds and the Bond Market in India
How bonds work: what a bond is, prices and yields, government securities and T-bills, the 10-year benchmark yield, the RBI and the bond market, who owns bonds, global index inclusion, the corporate bond market, defaults and lessons, green and other bonds, and a recap.
- What a Bond Is A bond is a loan you give to a government or company in return for regular interest and repayment of the principal on a fixed date. 📄 Read-aloud
- Bond Prices and Yields Move in Opposite Directions When interest rates rise, existing bond prices fall, and when rates fall, prices rise, because new bonds offer different returns. 📄 Read-aloud
- Government Securities and T-Bills The central government borrows through treasury bills of up to one year and dated government securities of longer maturity, issued by the RBI on its behalf. 📄 Read-aloud
- The Benchmark 10-Year Yield The yield on the 10-year government bond is the country's benchmark interest rate, influencing home loans, corporate borrowing and equity valuations. 📄 Read-aloud
- The RBI, Repo Rate and the Bond Market The RBI influences bond yields through its policy rate, open market operations and liquidity management, and it manages government borrowing. 📄 Read-aloud
- Who Owns Government Bonds Banks, insurers, provident funds and, increasingly, foreign investors hold most government bonds, partly due to regulatory requirements. 📄 Read-aloud
- Bonds and the Bond Market in India: Checkpoint 1 Quick checkpoint - five questions on bonds and the bond market in india. 5 questions
- Global Index Inclusion In 2024 and 2025, major global bond indices began including Indian government bonds, bringing foreign inflows and lower borrowing costs. 📄 Read-aloud
- The Corporate Bond Market India's corporate bond market is much smaller than its government bond market, and dominated by top-rated borrowers. 📄 Read-aloud
- Defaults and Lessons: IL&FS and Yes Bank The IL&FS default in 2018 and the write-down of Yes Bank's AT1 bonds in 2020 showed that bonds can lose value, even when investors thought them safe. 📄 Read-aloud
- Green Bonds and Other Themes India has issued sovereign green bonds and other themed bonds to fund climate projects, and sovereign gold bonds allowed investors to hold gold in bond form. 📄 Read-aloud
- Bonds in India: Recap A recap of how bonds work and how India's bond market is evolving. 📄 Read-aloud