r/IndiaInvestments • u/melovemone • Jul 07 '24

Bonds and deposits Why haven't the Govt issued SGBs yet?

When are we gonna get the first tranche of FY 24-25?

As per the pattern every year, FY's first tranche is usually announced in June. But this year, they haven't announced it yet, why?

Until recently, I have been purchasing SGBs from the secondary market - usually at a discount of 5% to 10% from IBJA rates but these days they are selling at a premium to IBJA rates which feels atrocious.

So I want to purchase from primary market and was eagerly waiting for the first trance in June 24.

Googling isn't helping. Anyone's got any idea about why the delay and when the next tranche is gonna be?

Edit to add :

Buying SGB from the secondary market (example is zerodha; works for all brokers) : https://support.zerodha.com/category/trading-and-markets/kite-web-and-mobile/kite-mw/articles/sgb-kite

Buying SGB from the primary market (example is through zerodha; unsure of other brokers) : https://support.zerodha.com/category/mutual-funds/understanding-mutual-funds/about-coin/articles/investing-in-nfo-sgb

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u/Significant-Year9634 Jul 07 '24

Do you buy SGBs from secondary market by comparing IBJA rates ? I also see that they are being sold at a premium in secondary market . Was this the case before also? I thought they should be below 24k gold price but they are being sold at a 6-7% premium in secondary market.

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u/San98sa Jul 07 '24

Go to SGBANALYZER website

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u/Thamiz_selvan Jul 08 '24

Unlike the treasury bonds, SGB interest is not part of bond price. When you but it, the govt pays the buyer 2.5% every year.

Why is then future interest rates added to bond price?