Bond dealers said the hike in yields on state government paper was in line with the increase across the board - treasury bills, Government of India (GoI) bonds, and corporate paper
India's benchmark 10-year bond yield rose to its highest levels since March 2019 in early trade on Monday as investors prepared for around a 50-basis-point rate increase later this week
Global investment-grade debt has returned almost 1% in May, the first monthly gain since July, while US Treasuries are heading for their best month since November
The rate hike and the consequent rise in bond yields and upward revisions in lending rates by banks will raise companies' funding costs
The yield on the 10-year benchmark government bond fell almost 9 bps to end the day at 7.21 per cent
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Cost of borrowing to go up; analysts say robust tax revenues crucial
Investors should be ready for volatility in long-duration securities, say experts.
Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India, said he expected repo hikes in June and August policy review meetings too
Fall in global crude oil prices also leads to a sharp decline in bond yields
European Central Bank officials said on Thursday that the central bank might start hiking euro zone rates as early as July
US Treasury yields dipped after hitting three-year highs on Wednesday as buyers emerged. Benchmark 10-year yields were last at 2.8455%, after reaching 2.981% overnight, the highest since Dec. 2018
Spot gold was down 0.3% at $1,944.06 per ounce, as of 0430 GMT, after hitting its lowest since April 11. U.S. gold futures fell 0.7% to $1,944.80
Wall Street opened higher on Tuesday and bond yields continued to swing upward as Russia's invasion of Ukraine weighed on global growth expectations
India imports more than two-thirds of its oil requirements and rising prices tend to push up imported inflation and widen the country's trade and current account deficits
The decline in spreads has been accompanied by a sell-off in equities by foreign portfolio investors (FPIs)
In its April 8 monetary policy review, the Reserve Bank of India (RBI) signalled that from being supportive towards growth, its focus would now shift towards reining in inflation
The RBI statement showed for a seven-year paper, the notified amount was Rs 7,000 crore and bids received were worth Rs 22,632 crore
On Tuesday, the yield on the 10-year benchmark government bond advanced 5 basis points (bps) to close the day at 7.19 % - close to a three-year high
Rising bond yields, fears of aggressive rate hikes by global central banks, and Covid-19 scare in China are among the key pain-points for investors