Street Signs: Softening US bond yields, promoter buying a cue for traders

The Securities and Exchange Board of India's (Sebi's) efforts to regulate derivatives trading have already begun impacting trading volumes

Yield lifeline: US bond drop throws Indian markets a much-needed rope

 

A decline in US bond yields has provided some relief to Indian markets, which have been grappling with the strain of foreign portfolio investor (FPI) outflows. The yield on the 10-year US Treasury has dropped by 32 basis points to 4.304 per cent from 4.625 per cent on February 12. Market experts underline the strong correlation between US bond yields, domestic market performance, and FPI flows. Lower US bond yields make Indian markets more attractive to FPIs, encouraging investment in emerging markets like India. According to a note by