Fixed Income Securities Market in India: Pre- and Post-Covid-19 Pandemic

The fixed-income securities market is a major source of capital formation and financing of economic activities. Besides, it is a dominant source of funding for sovereigns, and investments by market participants in the government securities (G-Sec) market. G-Sec markets also provide a proxy of the risk-free rate, one of the core financial concepts. Movements in yields of fixed-income securities and spreads are important benchmarks for various financial market activities. The Covid-19 pandemic adversely impacted almost every sphere of human life and the financial markets were no exception. This paper examines the impact of the Covid-19 pandemic on the Indian fixed-income securities market and highlights its resilience.