Indian government bond yields were largely flat on Wednesday in yet another trading session, amid consolidation after their recent decline and as traders awaited more directional triggers
Axis Mutual Fund on Tuesday launched an open-ended fund of ETF -- wherein the underlying investments comprise US treasury securities -- and is expecting to garner at least Rs 100 crore in the opening week. The seventh largest fund house expects to mop up at least Rs 500 crore from the US treasury dynamic bond ETF in the next one year. The fund house said the NFO, which will be managed by Vinayak Jayanath, will close on December 19. If redeemed/switched-out within one month from the date of allotment, the fund house will charge an exit load of 0.25 per cent, it said, adding that if redeemed after one month from the date of allotment, there will be no such charges. The ETF is benchmarked against the Bloomberg US intermediate treasury index, and has the primary investment objective of providing regular income by investing in units of overseas ETFs, B Gop Kumar, the chief executive of the company, said.
The dollar gained as investors took profits on bets it would weaken further and shrugged off economic data suggesting the Fed could be done hiking rates
Yellen added that she discussed China's growth slowdown with APEC, who agreed that it presented 'downside risk to the economic outlook' particularly for APEC nations with strong trade ties to Beijing
The price of 22-carat gold slid Rs 150, with the yellow metal selling at Rs 56,100
The selling pressure was less intense in the broader markets
The central bank had not given any timeline for OMO sales and said it will depend on the ongoing liquidity situation
Market participants said that India's bond inclusion in J P Morgan index further aided inflows in the domestic debt market
Foreign exchange reserves have declined by around $25 billion from the highest point in 2023
There could be losses in these funds if interest rates rise or the rupee appreciates
The Treasury Department said the deficit was the largest since a covid-fueled $2.78 trillion gap in 2021
Treasury managers are padding up for the new norms for the classification, valuation and operation of investments
Spot gold rose nearly 1% to $1,886.40 per ounce by 0932 GMT. U.S. gold futures added 0.9% to $1,899.20
Benchmark Treasury yields edged higher and the dollar index rose 0.4%, denting appeal for gold
The 10-year Treasury bond yield rose by 203 basis points (bps) from 8.2 per cent on 17 June, 1987 to 10.23 per cent on 15 October, 1987
Market participants also exercised caution ahead of the Reserve Bank of India's upcoming monetary policy announcement
This increase in the US bond yield, the most significant in roughly four decades, is consequential
Shorter-maturity Treasury yields had previously reached the highest levels since at least 2007, and extended their climb Tuesday
The combination of that and an agreement to avert a partial U.S. government shutdown sent benchmark Treasury yields to as high as 4.706% on Tuesday, a 16-year peak, in turn driving the dollar higher
This makes Indian bonds less attractive to foreign investors