AGL 38.15 Increased By ▲ 0.90 (2.42%)
AIRLINK 121.51 Decreased By ▼ -2.51 (-2.02%)
BOP 5.85 Increased By ▲ 0.23 (4.09%)
CNERGY 3.75 Increased By ▲ 0.03 (0.81%)
DCL 8.40 Increased By ▲ 0.15 (1.82%)
DFML 40.89 Increased By ▲ 0.62 (1.54%)
DGKC 84.60 Decreased By ▼ -1.14 (-1.33%)
FCCL 32.70 Increased By ▲ 0.10 (0.31%)
FFBL 65.50 Decreased By ▼ -1.00 (-1.5%)
FFL 10.05 Decreased By ▼ -0.11 (-1.08%)
HUBC 103.80 Increased By ▲ 0.70 (0.68%)
HUMNL 13.25 Decreased By ▼ -0.15 (-1.12%)
KEL 4.43 Increased By ▲ 0.18 (4.24%)
KOSM 7.09 Decreased By ▼ -0.09 (-1.25%)
MLCF 37.50 Decreased By ▼ -0.80 (-2.09%)
NBP 60.25 Decreased By ▼ -4.76 (-7.32%)
OGDC 172.25 Decreased By ▼ -1.55 (-0.89%)
PAEL 24.80 Decreased By ▼ -0.10 (-0.4%)
PIBTL 5.70 Decreased By ▼ -0.10 (-1.72%)
PPL 141.69 Decreased By ▼ -1.01 (-0.71%)
PRL 22.72 Decreased By ▼ -0.26 (-1.13%)
PTC 14.74 Decreased By ▼ -0.37 (-2.45%)
SEARL 64.56 Decreased By ▼ -0.79 (-1.21%)
TELE 7.14 Increased By ▲ 0.14 (2%)
TOMCL 35.50 Decreased By ▼ -1.41 (-3.82%)
TPLP 7.29 Decreased By ▼ -0.05 (-0.68%)
TREET 14.20 Decreased By ▼ -0.08 (-0.56%)
TRG 51.75 Increased By ▲ 2.05 (4.12%)
UNITY 26.60 Increased By ▲ 0.45 (1.72%)
WTL 1.22 Decreased By ▼ -0.02 (-1.61%)
BR100 9,483 Decreased By -118.3 (-1.23%)
BR30 28,371 Decreased By -202.1 (-0.71%)
KSE100 88,967 Decreased By -1319.8 (-1.46%)
KSE30 27,827 Decreased By -515.9 (-1.82%)

MUMBAI: Indian government bond yields started the week higher, as U.S. Treasury yields continued to scale fresh peaks, with the 10-year rising to a fresh 16-year high.

India’s 10-year benchmark 7.18% 2033 bond yield was at 7.2331% as of 10:00 a.m. IST on Tuesday, after ending at 7.2162% in the previous session. Indian financial markets were closed Monday for a local holiday.

The Indian 10-year yield rose six basis points (bps) last week, and gained 10 bps in July-September, posting its first quarterly rise in more than a year.

“The reaction in Indian bonds is mild compared with the quick rise in U.S. peers, but any fall in yields is unlikely,” a trader with a state-run bank said.

U.S. yields have jumped as an agreement to avert a partial U.S. government shutdown reduced demand for the debt.

Unchanged Oct-Mar borrowing keeps Indian bond yields flat

On Tuesday, the U.S. 10-year yield hit 4.70% for the first time since October 2007.

U.S. market rates have been rising on bets that the U.S. Federal Reserve may hike policy rates one more time in 2023, and also keep them higher for an extended period.

Losses in Indian bonds were capped as oil prices eased, with the benchmark Brent crude oil easing below $90 per barrel.

The contract had risen above $97.50 per barrel last week, its highest in nearly a year.

Bond market sentiment also remained supported after the inclusion of Indian bonds in JPMorgan’s emerging market debt index. This has opened the door for more foreign inflows.

India will borrow 6.55 trillion rupees ($78.73 billion) through bond issues in the October-March period. This includes 1.45 trillion rupees of 10-year bonds, nearly one-fourth of the fiscal second half borrowing.

Traders also await the Reserve Bank of India’s monetary policy decision due on Friday. The RBI is expected to maintain status quo on rates.

Comments

Comments are closed.