An improving global economic outlook and progress on coronavirus disease vaccinations have pushed up bond yields in emerging east Asia
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Widespread expectations of a coming US economic boom are forcing bond fund managers to dust off their playbooks to combat a nemesis they have not had to worry about for more than a decade: inflation
Asian share markets eased as a spike in global bond yields soured sentiment toward richly priced tech stocks, while a stampede out of crowded positions in oil caused the sharpest setback in months
The Indian bond market, which has been following the rise in US yields of late, should be able to temper its demand for higher yields
The latest factsheet shows that SBI's Dynamic Bond Fund's cash holding rose to 32.5% as of the end of January, compared with 8.4% at the end of June
Amazon.com Inc rose 1.4% and Tesla Inc added 3.7%, with the two companies giving the greatest lift to the S&P 500
Yields of perpetual bonds issued by State Bank of India and Bank of Baroda, for instance, have gone up by as much as 80-90 basis points (bps), and top recommendation lists of most managers
The benchmark yield surged to 1.676%, the highest level since February 2020
Weakness in index heavyweight Reliance Industries and banking and financial stocks was what dragged indices lower even as IT stocks, without much success, tried to cushion the fall
Besides redemption pressure in debt market, it will make fund raising difficult for PSBs
Spreads on five- and 10-yr rupee corporate bonds diverging
The bloc's fiscal support is also modest compared to the $1.9 trillion relief package approved by the United States Congress
Five-year interest-rate swaps jumped 63 basis points in February, reflecting growing expectations of a tighter monetary policy
RBI sold some of 10-year debt at 6.22 per cent on Friday, compared with about 6 per cent in previous auctions
NASDAQ futures rose 1.6% and S&P 500 futures 0.8%
Chinese stocks posted their biggest decline in seven months
The markets have largely taken to a downward trend amid high bond yields in the US
While policy makers welcome a modest rise in bond yields as a signal of confidence in the economic outlook, they worry an unchecked jump would undercut recoveries