FTSE World Government Bond Index Overview and Updates

The FTSE World Government Bond Index is a comprehensive benchmark that tracks the performance of global government bonds. It's a widely used index that helps investors and analysts understand the broader market trends.

The index covers over 20 major developed and emerging markets, providing a broad representation of the global government bond market. This extensive coverage allows for a more accurate assessment of market conditions.

The FTSE World Government Bond Index is calculated in US dollars, making it accessible to investors worldwide. This allows for easy comparison and analysis of bond market performance across different regions.

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Portugal has been added to the FTSE World Government Bond Index, effective November 2024.

The country now meets all three eligibility criteria for the classification: market size, credit rating, and a Market Accessibility Level of at least 2.

As of March 2024, 17 EUR-denominated government bonds are expected to be included in the WGBI, with €114.9 par amount outstanding.

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This accounts for 0.61% of the index on a market value weighted basis.

South Korea will remain on the FTSE Fixed Income Country Classification Watch List, with the potential for a Market Accessibility Level reclassification.

The country has made significant progress in improving government bond accessibility for international investors since being placed on the watch list in September 2022.

FTSE Russell has observed the progression of local initiatives, including the signing of contracts with Clearstream and Euroclear to connect to the International Central Securities Depository.

This link is expected to go live in June 2024.

India will also remain on the watch list, with the potential for inclusion on the Emerging Markets Government Bond Index (EMGBI).

The country's Market Accessibility Level and credit rating will be reassessed in future reviews.

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The FTSE World Government Bond Index is a benchmark for global government bond markets, covering over 20,000 bonds from 20 countries.

It's a widely used benchmark for investors and asset managers to measure the performance of their government bond portfolios.

The index is designed to provide a broad representation of the global government bond market, with a wide range of maturities and currencies.

The bonds included in the index have a minimum credit rating of A- or above, and a minimum market value of $1 billion.

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Index licensing allows financial institutions to use FTSE's fixed income indexes as underlying indexes for various investment products.

FTSE's indexes can be licensed for use in over-the-counter (OTC) or exchange-traded derivatives and investment products.

Leading financial institutions depend on FTSE's indexes for the creation of their index-based investment products, including ETFs, swaps, structured products, warrants, and certificates.

These products provide investors with a convenient and efficient way to gain exposure to the fixed income market.

FTSE's indexes are designed, calculated, and published by FTSE Index, ensuring their accuracy and reliability.