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Business Recorder
3 hours ago
- Business
- Business Recorder
Indian bond yields end a tad higher on week amid worries over oil surge
MUMBAI: Indian government bond yields ended marginally higher for the week on Friday, as elevated oil prices dampened sentiment, overshadowing dovish commentary from the central bank chief. The yield on the benchmark 10-year bond ended at 6.3087%, compared with the previous close of 6.3095%. The five-year 6.75% 2029 bond ended at xx% after ending at 6.0176% on Thursday. The yields rose 1 and 2 basis points this week. 'The immediate lookout in the market is the ongoing Iran- Israel conflict and its impact on oil prices and the currency,' said Rahul Bhuskute, CIO at Bharti AXA Life Insurance. 'If the conflict escalates further and the oil price shoots up sharply, the central bank may find itself in a spot to protect the rupee and may have limited room to ease more.' The benchmark Brent crude contract has risen 4.2% so far this week, after jumping 11.7% last week amid ongoing conflict between Iran and Israel. The contract was around $77 per barrel, with uncertainty about potential U.S. involvement stoking caution. Indian bond yields marginally higher; focus on oil, debt supply India imports a bulk of its crude oil needs, and higher prices could impact its inflation outlook. Earlier this month, the Reserve Bank of India reduced its inflation forecast for the current fiscal year to 3.7%, while cutting its key lending rate by a steeper-than-expected 50 basis points. It, however, reverted to a 'neutral' stance from 'accommodative', prompting analysts to forecast the end of the monetary easing cycle. However, RBI Governor Sanjay Malhotra said earlier in the week that inflation below the central bank's current projections could open up policy space. Rates Indian overnight index swap (OIS) rates eased slightly this week, after witnessing paying in the previous week. The one-year OIS rate was at 5.52%, while the two-year OIS rate ended at 5.52%. The liquid five-year ended at 5.75%.
Economic Times
10 hours ago
- Business
- Economic Times
Mild recovery in India bonds; key debt auction to decide next direction
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian government bonds recovered slightly in early deals on Friday following a massive selloff in the previous session on concerns about rising oil prices , with the bonds' next move dependent on the demand at the weekly debt auction The yield on the benchmark 10-year bond was at 6.2963% as of 10:00 a.m. IST, compared with the previous close of 6.3095%. The five-year 6.75% 2029 bond was at 5.9924% after ending at 6.0236% on Delhi will sell bonds worth 270 billion rupees ($3.12 billion), which includes 150 billion rupees of the 2029 bond. The yield on this paper has risen 20 basis points in the last two weeks."So far, volumes are too shallow to judge whether the move will sustain through the day," said a trader with a private bank. Bond yields jumped sharply in the previous session as worries that oil prices will further spike have kept investors on move inversely to benchmark Brent crude was around $77 per barrel during Asia hours on Friday as the Israel-Iran conflict continued, while uncertainty about potential U.S. involvement encouraged caution among imports a bulk of its crude oil needs, and higher prices could impact its inflation this month, the Reserve Bank of India reduced its inflation forecast for the current fiscal year to 3.7%, while cutting its key lending rate by a steeper-than-expected 50 basis however, reverted to a "neutral" stance from "accommodative", prompting analysts to forecast the end of the monetary easing cycle. The minutes of this meeting are due after market hours on overnight index swap (OIS) rates eased after witnessing paying pressure in the previous one-year OIS rate and the two-year OIS rate were at 5.51% each, while the liquid five-year was 2 bps down at 5.73% ($1 = 86.5850 Indian rupees)
Mint
11 hours ago
- Business
- Mint
Mild recovery in India bonds; key debt auction to decide next direction
MUMBAI, June 20 (Reuters) - Indian government bonds recovered slightly in early deals on Friday following a massive selloff in the previous session on concerns about rising oil prices, with the bonds' next move dependent on the demand at the weekly debt auction. The yield on the benchmark 10-year bond was at 6.2963% as of 10:00 a.m. IST, compared with the previous close of 6.3095%. The five-year 6.75% 2029 bond was at 5.9924% after ending at 6.0236% on Thursday. New Delhi will sell bonds worth 270 billion rupees ($3.12 billion), which includes 150 billion rupees of the 2029 bond. The yield on this paper has risen 20 basis points in the last two weeks. "So far, volumes are too shallow to judge whether the move will sustain through the day," said a trader with a private bank. Bond yields jumped sharply in the previous session as worries that oil prices will further spike have kept investors on edge. Yields move inversely to prices. The benchmark Brent crude was around $77 per barrel during Asia hours on Friday as the Israel-Iran conflict continued, while uncertainty about potential U.S. involvement encouraged caution among investors. India imports a bulk of its crude oil needs, and higher prices could impact its inflation outlook. Earlier this month, the Reserve Bank of India reduced its inflation forecast for the current fiscal year to 3.7%, while cutting its key lending rate by a steeper-than-expected 50 basis points. It, however, reverted to a "neutral" stance from "accommodative", prompting analysts to forecast the end of the monetary easing cycle. The minutes of this meeting are due after market hours on Friday. Indian overnight index swap (OIS) rates eased after witnessing paying pressure in the previous session. The one-year OIS rate and the two-year OIS rate were at 5.51% each, while the liquid five-year was 2 bps down at 5.73% ($1 = 86.5850 Indian rupees) (Reporting by Dharamraj Dhutia; Editing by Harikrishnan Nair)
Time of India
11 hours ago
- Business
- Time of India
Mild recovery in India bonds; key debt auction to decide next direction
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian government bonds recovered slightly in early deals on Friday following a massive selloff in the previous session on concerns about rising oil prices , with the bonds' next move dependent on the demand at the weekly debt auction The yield on the benchmark 10-year bond was at 6.2963% as of 10:00 a.m. IST, compared with the previous close of 6.3095%. The five-year 6.75% 2029 bond was at 5.9924% after ending at 6.0236% on Delhi will sell bonds worth 270 billion rupees ($3.12 billion), which includes 150 billion rupees of the 2029 bond. The yield on this paper has risen 20 basis points in the last two weeks."So far, volumes are too shallow to judge whether the move will sustain through the day," said a trader with a private bank. Bond yields jumped sharply in the previous session as worries that oil prices will further spike have kept investors on move inversely to benchmark Brent crude was around $77 per barrel during Asia hours on Friday as the Israel-Iran conflict continued, while uncertainty about potential U.S. involvement encouraged caution among imports a bulk of its crude oil needs, and higher prices could impact its inflation this month, the Reserve Bank of India reduced its inflation forecast for the current fiscal year to 3.7%, while cutting its key lending rate by a steeper-than-expected 50 basis however, reverted to a "neutral" stance from "accommodative", prompting analysts to forecast the end of the monetary easing cycle. The minutes of this meeting are due after market hours on overnight index swap (OIS) rates eased after witnessing paying pressure in the previous one-year OIS rate and the two-year OIS rate were at 5.51% each, while the liquid five-year was 2 bps down at 5.73% ($1 = 86.5850 Indian rupees)
Business Recorder
2 days ago
- Business
- Business Recorder
Indian bond yields little changed as focus remains on oil moves
MUMBAI: Indian government bond yields ended largely unchanged on Wednesday as market participants closely tracked oil prices, which have witnessed a spike due to the recent escalation in the Israel-Iran conflict. The benchmark 10-year bond yield ended at 6.2615%, compared with Tuesday's close of 6.2646%. Pawan Somani, founder of Infinask Advisors cited negative sentiment from the rise in global crude oil prices following continued geopolitical uncertainty. 'Weakness in rupee and cautiousness ahead of Fed outcome resulted in subdued volumes,' he added. The benchmark Brent crude contract was around $76 per barrel and is up more than 10% in the last four sessions after concerns over supply disruptions rose due to the Middle East conflict. India imports most of its crude requirements and elevated prices could pose an upside risk to the inflation outlook, thwarting the limited possibility of another rate cut from the Reserve Bank of India. Indian bond yields, swap rates ease after dovish comments from RBI chief Bond yields had dipped on Tuesday after dovish commentary from RBI Governor Sanjay Malhotra, who said inflation below the central bank's current projections could open up policy space and that the change in stance does not imply an immediate reversal in the policy cycle. Earlier this month, the RBI cut its key policy rate by a steeper-than-expected 50 basis points but changed its stance to 'neutral' stance from 'accommodative', leading analysts to suggest the easing cycle has ended. The minutes of this meeting are due after market hours on Friday. Traders also await the Federal Reserve policy decision due after Indian market hours. Even though no rate action is anticipated, the major focus would remain on guidance and signals on the quantum of cuts in 2025. Rates Indian overnight index swap (OIS) rates ended marginally higher amid shallow trading volumes. The one-year OIS rate ended at 5.48% and the two-year OIS rate ended at 5.46%. The liquid five-year OIS rate ended at 5.5.68%.
