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Rupee, bonds hold steady after US Fed's expected move to hike rate

Globally, bond yields had risen steadily in recent past to price in four rate hikes in total

BS Reporter  |  Mumbai 

Rupee, bonds hold steady after US Fed's expected move to hike rate

Bond yields in India have not shown any reaction to the US Federal Reserve’s move to hike the key policy rate by 25 basis points last night, as the hike was already expected and priced in.

The US Fed also indicated that there might be two more rate hikes by the end of calendar year, in line with market expectations.

The US Fed’s effective communication nixed the chances of volatility, but globally bond yields had risen steadily of late to price in four rate hikes in total. The US 10-year yield rose above 3 per cent in reaction to the rate hike, but settled at 2.96 per cent. The yields in India and other emerging have closely tracked the

The 10-year Indian bond was trading at 7.91 per cent yield at 9.10 am on Thursday, lower than its previous close of 7.93 per cent. The rupee also remained largely steady, trading at 67.62 a dollar, against its previous close of 67.64 a dollar. The rupee had opened stronger at 67.54 a dollar.

First Published: Thu, June 14 2018. 09:50 IST
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