Benchmark indices hit one-month lows on intraday basis
The run-up in the markets in these last few months, analysts at HSBC said, has made investors nervous about the markets amid multiple headwinds
Shorter-maturity Treasury yields had previously reached the highest levels since at least 2007, and extended their climb Tuesday
The yield on the 10-year benchmark government security rose 10 basis points during the quarter to settle at 7.22 per cent on Friday
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