The benchmark 10-year government bond yield fell nearly 10 basis points to 7.32 per cent as crude prices declined, while the rupee strengthened for the second straight session
The sharp rise in government bond yields since the Reserve Bank of India's (RBI) October monetary policy review threatens to increase the government's borrowing costs and put pressure on its interest expenditure, potentially squeezing fiscal flexibility, according to experts. Yield on the 10-year benchmark government bond rose to 7.474 per cent on October 23 from 7.193 per cent on October 6, increasing about 28 basis points, according to data compiled by PTI. The rise in yields has been driven by elevated crude oil prices, a spike in global bond yields, tighter liquidity conditions in the Indian banking system and expectations of more interest rate hikes by the RBI, market experts said. "If yields remain elevated, the cost of financing the fiscal deficit will rise, adding pressure on interest expenditure and fiscal flexibility," said V Ramachandra Reddy, head of treasury at Karur Vysya Bank. He said the approximately 30-basis-point rise in government securities yields since the ...
The Reserve Bank of India raised rates for the first time in nearly four years and signalled further increases as inflation rises
The benchmark 10-year government bond yield rises to 7.24 per cent as the RBI shifts to withdrawal of accommodation, with foreign outflows and oil prices adding pressure
The rupee fell 0.5 per cent to 96.31 per dollar, while the benchmark 10-year bond yield rose to 7.21 per cent as Brent crossed $100 a barrel ahead of the RBI policy meeting.
Benchmark 10-year government bond yield rises 6 basis points to 7.19 per cent as higher crude prices and a weaker rupee intensify pressure on the bond market
Liquidity surplus tops ₹7.75 trillion as FCNR(B) swap inflows continue; weighted average call rate drops to 5.02 per cent from 5.16 per cent
Benchmark 10-year government bond yield settles at 6.91 per cent, while the rupee closes at 95.39 per dollar as RBI dollar sales support the local currency
Benchmark 10-year government bond yield rose to 6.85% during the week, while the rupee weakened to 95.71 per dollar amid higher crude prices and hawkish MPC signals
Benchmark 10-year government bond yield rises 5 basis points to 6.87 per cent as markets increasingly price in the possibility of a rate hike at the next policy review
The rupee strengthened and government bond yields eased on geopolitical relief and lower crude prices before both pared gains after the RBI's policy announcement and Governor Sanjay Malhotra's remarks
Despite markets continuing to price in policy rate hikes over the next 6-12 months, the softer-than-expected tone of the policy has supported bond markets, said Deepak Agrawal, Kotak Mahindra AMC.
Softer crude prices, expectations of lower state borrowing and FCNR(B) inflows supported bonds, while importer dollar demand erased the rupee's intraday gains.
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The rupee weakened 59 paise against the US dollar as broad dollar strength, weaker Asian currencies, importer demand and foreign portfolio outflows weighed on sentiment
The investment bank said easing inflation expectations, lower oil prices and reduced fiscal risks have improved the outlook for India's long-dated government securities, particularly 30-year bonds
The rupee rose for a fourth straight session and bond yields eased as crude oil prices fell below pre-conflict levels and strong foreign debt inflows lifted market sentiment
The benchmark 10-year bond yield fell 6 basis points to 6.80 per cent as RBI Governor Sanjay Malhotra's remarks eased rate-hike concerns
The purchases by Fairfax India Holding Corp were made to bring capital into the country ahead of a potential deal to buy stake in government-owned IDBI Bank