This makes Indian bonds less attractive to foreign investors
The US economy, on the other hand, has remained resilient amid strong consumer spending and a resilient labour market
The 10-year benchmark 7.18% 2033 bond yield ended at 7.1441% after closing at 7.1541% in the previous session
The rupee settled at Rs. 83.09 a dollar on Thursday, against Rs. 83.08 per dollar on Wednesday
The potential settlement of domestic currency bonds through an offshore platform such as Euroclear has been a long-standing topic of discussion
The I-CRR could be reduced to 5%-8% in a phased manner from the current 10%, treasury officials have said
The benchmark 7.26% 2033 bond yield was trading at 7.1611% as of 10:15 a.m. IST, after ending the previous session at 7.1880%
Indian markets, analysts believe, are an outlier and can still justify expensive valuations amid a likely recovery in corporate earnings going ahead
Over the past one month, the yields on 10-year government bonds have risen 14.7 basis points to 7.218 per cent in India, while they have touched a 17-year high of 4.35 per cent in the US
The rupee could continue to see near-term volatility
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The yield on 10-year Indian government bonds is now only 295 basis points higher than that of US 10-year treasury bonds, the lowest since January 2007
Spread between Indian and US 10-year bond yields at 3.14%, narrowest in over a decade
Overnight-indexed swaps show that India's borrowing costs are likely to decline only in the second half of 2024, a shift from earlier when they were pricing in two reductions after the June meeting
Earlier in the day, the SBI accepted bids worth 100 billion rupees for 15-year bonds at a coupon of 7.54%
However, the Indian unit gave up some early gains as importers bought dollars for oil companies, dealers said
As exporters took measures to protect their receivables, forward premiums declined from a recent peak of 1.87 per cent to 1.60 per cent, dealers said
Bond yields inch up by 6 basis points on Friday as US yields rise
All 64 economists in the poll conducted between May 16 and May 29 expected no change to the 6.50% repo rate
Yield on 10-year government bond closes below 7%