India's 10-year bond yield premium over the US has narrowed to around 250 basis points, well below its decade average. But does that mean RBI will cut rates? Let's find out
A jump in US Treasury yields, pressure on the rupee and RBI's latest liquidity move have again brought focus back on India's 10-year bond yield and why markets track gap so closely
The BSE Sensex fell as much as 1.06 per cent or 869.52 points to 80,727.11. Similarly, the NSE Nifty50 dropped 1.09 per cent or 361.85 points to 24,541.60.
The 10-year govt bond yield surged 7 bps to its highest level in over two months tracking the rise in US Treasury yields
The 10-year benchmark bond yield closed at 7.3769%, after ending at 7.3626% in the previous session
The combination of those higher yields and risk of a wider conflict in the Middle East soured sentiment at the start of a week full of mega-cap earnings and key data
The NSE Nifty50 ended 82 points lower at 19,543; broader indices too finished with significant losses. Private banks, however, bucked the trend on Friday.
The cash-futures basis trade by some measures is as big as it was in 2019 and early 2020, when the onset of the pandemic sparked a rush for the exits that required a bailout by the Fed
Oil prices increased on Tuesday for a fourth consecutive session, raising fears that higher commodity prices will keep price pressures elevated
CLOSING BELL ON AUGUST 23, 2023: The NSE Nifty 50 ended with a gain of 48 points; Shares related to Chandrayaan-3 mission were also in demand on Wednesday.
CLOSING BELL ON AUGUST 22, 2023: BSE MidCap and SmallCap indices rallied up to 0.9 per cent, while the NSE Nifty 50 ended with a notional gain of 3 points at 19,396.
The benchmark yield had dipped earlier in the day, as a fall in oil prices and U.S. yields supported buying sentiment for bonds
The Dow Jones Industrial Average fell 0.86%, to 33,706.15, the S&P 500 lost 1.29%, to 4,228.37, and the Nasdaq Composite dropped about 2%, to 12,705.22
The MSCI world equity index, which tracks shares in 50 countries, was down 1.14%. The pan-European STOXX 600 index was down 0.26%.
Salesforce, Capri Holdings rise after lifting profit outlook; US 10-year Treasury yields spike to two-week high
"Gold is behaving less like an arrow and more like a feather. It's drifting a little this way, and a little that way on the winds that drive markets," independent analyst Ross Norman said.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.76%, with most markets in the red, though a resurgence in property stocks helped greater China markets
Turkey's shock weekend decision to replace its hawkish central bank governor also supported the dollar's safe-haven appeal.
Treasury yields reached their highest since January 2020, continuing their climb after being briefly held back by the Federal Reserve's dovish words
The rupee on Wednesday tumbled to a 14-month low, while bond yields hardened and equities fell on continued pull-out by foreign investors from various asset classes