Yield spread between Sensex earnings and US 10-yr G-Sec narrowest in 12 years
The current spread is nearly 142 bps lower than the 10-year average spread of 518 bps, and 66 bps lower than the 20-year average spread of 442.3 bps
BNP Paribas said it has a cautious stance on the Indian markets amid lack of positive catalyst for further earnings upgrades amid slowing global demand, lofty valuations and a slowdown in retail flows
Spread between 10-yr G-sec and 2-yr bond yields narrows to 38-mth low
India may keep its market borrowing plan for the financial year intact, with a recent uptick in revenues likely to lead to a discussion on whether the target can be reduced
The rupee weakened versus the dollar as the market braced for a possible 100-basis-point rate hike by the Federal Reserve next week following a higher-than-expected inflation print in the US
Higher US interest rates typically leads to a stronger dollar and reduces the appeal of emerging market assets for global investors
The rise in bond prices came despite an increase in India's consumer price index inflation, which strengthens the case for the Reserve Bank of India to continue tightening monetary policy
Second rate hike in two months by lender after RBI's rate setting committee hiked benchmark repo rate by 50 bps to 5.4%; new MCLR at 7.90-8.40%
The U.S. dollar scaled a fresh 20-year peak, making greenback-priced gold less attractive for overseas buyers
According to the latest Reserve Bank of India (RBI) data, loans to micro, small, medium, and large industries rose to Rs 31.82 trillion as of July end, up 10.5 per cent year-on-year (YoY).
Bond yields fall as HDFC's Rs 10,000 crore debt sale plan propels custodian flows
The latest bond coupon at 7.26 per cent is higher than expected
A decline in domestic headline retail inflation to a five-month low in July also bolstered the appetite for bonds
US retail sales flat in July; core sales rise; retailer Target's quarterly profit slumps
The higher yields have provided a good entry point for debt investors after years of low yields
A rise of one basis point in the 10-year bond yield corresponds to a fall of roughly 7 paise in price
Last month, SBI's board had provided approval for raising up to Rs 11,000 crore via additional tier-I and tier-II bonds to meet regulatory requirements and support business growth
Softening of crude oil prices reduces upside risks to India's inflation, given that the country is among the biggest importers of the commodity
Markets perceive Fed as being less hawkish