Next week, states will participate in the final auction for the current financial year and as per the indicative calendar, they are expected to raise Rs 29,399 crore from the market
Traders reportedly adjusted positions in anticipation of an increase in state govt securities supply on Tuesday
At the previous state loan auction, the cut-off yield on the 10-year state government securities was set in a range of 7.36-7.41 per cent
The benchmark 10-year yield ended at 7.0764%, after closing at 7.0663% on Wednesday. The yield declined seven basis points in February, after falling 21 basis points in November-January
Under the new norms, banks must categorise bonds as "held-to-maturity" on a permanent basis, with the exception of 5 per cent of the portfolio that can be withdrawn throughout the year
A negative spread between Indian equity yield and US long-term Treasury bond makes Indian equities less attractive for foreign investors and may lead to a selloff by FPIs
Last week, the RBI kept policy rates and stance unchanged, while reiterating its commitment to meet the medium-term 4% inflation target
The overall market sentiment has remained positive after the government said it aims to reduce the fiscal deficit and lower its gross borrowing by a wide margin next financial year
The Fed repricing has followed Friday's blockbuster U.S. jobs report that far exceeded market expectations and sent U.S. bond yields soaring, boosting the country's currency
The yield on the benchmark 10-year government bond touched the day's low of 7.02 per cent as the government announced lower-than-expected gross borrowing for financial year 2024-25 on Thursday
Fiscal deficit target lower than expected; room for RBI to cut rate
The benchmark 10-year yield ended at 7.1760%, following its previous close at 7.1835%. Indian markets are shut on Friday for a holiday
The yield spread widened to 53 basis points on Tuesday. The last time the yield spread widened above 50 basis points was in January 2022
A rate cut will happen this year. When? It will depend on the growth-inflation dynamics as well as the US Fed action
Germany's 2-year bond yield, which is sensitive to interest rate expectations, was down 1 bp at 2.40%, its lowest since March
With rate cut hopes building up, their performance could improve further in 2024, say experts
We believe US rates have peaked, and the US Federal Reserve can start easing in the second half of 2024. However, the same cannot be said for Indian policy responses
Goa and Haryana secured lower cut-offs at 7.65 per cent, whereas Arunachal Pradesh experienced a higher cut-off
The 10-year benchmark bond yield is expected to move in a range of 7.21%-7.26%, after ending the previous session at 7.2356%, a trader with a primary dealership said
Domestic bond yields were relatively less volatile compared to the US treasury bond yields, as the market was driven by investors rather than traders