These comments come a week ahead of the meeting of the six-member monetary policy committee that starts from December 3. The decision in the meeting will be announced on Friday, December 5
Government bond yields dropped as traders anticipated Reserve Bank of India support through open market purchases, with expectations of an OMO calendar announcement boosting sentiment
The meeting, though without a formal agenda, is expected to focus on current market conditions, the traders said, declining to be named as they are not authorized to speak to the media
Government bonds rallied as the estimated revenue loss from GST tax cuts came in lower than expected, easing fiscal concerns. The yield on the benchmark 10-year bond eased to 6.49%
Benchmark 10-year yield closed at 6.60%, the highest since March, as higher SDL supply and Fitch's reaffirmation of India's BBB- rating weighed on sentiment
The yield on the 10 year benchmark government bond softened by 3 basis points during the day on the back of short covering, said dealers. It settled at 6.48%, against the previous close of 6.49%
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The yield on the 10-year Treasury declined on Wednesday after President Donald Trump reversed his comments about firing US Federal Reserve Chairman Jerome Powell
Benchmark 10-year bond yield is likely to move between 6.81 per cent and 6.85 per cent till the completion of the auction, compared with its previous close of 6.8329 per cent
Given the volatility expected over the short-term horizon, we cannot imagine that we will receive any major inflows over the next two months, they added
Investors now see an 83 per cent chance of a December rate cut, up from 59 per cent a day ago, and 70 per cent a week ago, according to the CME FedWatch tool
The Fed cut interest rate by 25 basis points on Thursday, as widely expected, amid a cooling labour market, while noting that economic growth remained solid