AVN 64.80 Increased By ▲ 0.63 (0.98%)
BAFL 30.55 Increased By ▲ 0.65 (2.17%)
BOP 4.68 Increased By ▲ 0.05 (1.08%)
CNERGY 3.87 Decreased By ▼ -0.02 (-0.51%)
DFML 13.50 Increased By ▲ 0.15 (1.12%)
DGKC 41.39 Increased By ▲ 0.54 (1.32%)
EPCL 46.59 Decreased By ▼ -0.41 (-0.87%)
FCCL 11.27 Increased By ▲ 0.27 (2.45%)
FFL 5.08 No Change ▼ 0.00 (0%)
FLYNG 5.79 Increased By ▲ 0.02 (0.35%)
GGL 9.95 Increased By ▲ 0.20 (2.05%)
HUBC 64.21 Increased By ▲ 2.26 (3.65%)
HUMNL 5.72 Increased By ▲ 0.07 (1.24%)
KAPCO 27.70 Increased By ▲ 0.12 (0.44%)
KEL 2.14 Decreased By ▼ -0.01 (-0.47%)
LOTCHEM 24.45 Increased By ▲ 0.15 (0.62%)
MLCF 21.35 Increased By ▲ 0.63 (3.04%)
NETSOL 84.40 Increased By ▲ 1.30 (1.56%)
OGDC 87.25 Increased By ▲ 1.20 (1.39%)
PAEL 11.02 Increased By ▲ 0.22 (2.04%)
PIBTL 4.18 Increased By ▲ 0.04 (0.97%)
PPL 77.30 Increased By ▲ 1.11 (1.46%)
PRL 13.66 No Change ▼ 0.00 (0%)
SILK 0.87 Decreased By ▼ -0.02 (-2.25%)
SNGP 41.70 Increased By ▲ 0.95 (2.33%)
TELE 5.91 Increased By ▲ 0.03 (0.51%)
TPLP 15.89 Increased By ▲ 0.24 (1.53%)
TRG 112.85 Increased By ▲ 2.75 (2.5%)
UNITY 13.98 Increased By ▲ 0.23 (1.67%)
WTL 1.16 Increased By ▲ 0.01 (0.87%)
BR100 4,039 Increased By 71.7 (1.81%)
BR30 14,441 Increased By 256.4 (1.81%)
KSE100 40,607 Increased By 735.7 (1.85%)
KSE30 15,170 Increased By 272 (1.83%)
Follow us

MUMBAI: Indian government bond yields reversed its declining trend after the country’s central bank raised its key policy rate by 50 basis points on Friday in an effort to tame stubbornly high inflation.

The 10-year bond yield was at 7.2588%, as of 0545 GMT. It had declined to 7.1073% earlier on Friday after ending at 7.1516% on Thursday.

The monetary policy committee (MPC) raised the key lending rate or the repo rate to 5.40%. The rates were hiked by 40 bps and 50 bps in May and June.

“The central bank not only chose to hike by the upper-end of the expectation, but the comments and prediction on inflation are tilting towards the hawkish side,” a trader with a private bank said.

The MPC retained its GDP growth projection for 2022/23 at 7.2%, while its inflation forecast remained unchanged at 6.7%.

India’s headline retail inflation eased to 7.01% in June from an eight-year high of 7.79% in April.

“After a media report yesterday that the Reserve Bank of India will pause after August, we saw a sharp rally, but all of that is completely reversed now.

Indian bond yields track US peers higher, up after 9-session slide

We expect at least another 60 basis points of hike in this cycle,“ a trader with a primary dealership said.

HDFC Bank and Kotak Mahindra Bank, however, continue to expect a terminal repo rate of 5.75% by December.

Market participants will now focus on commentary from central bank Governor Shaktikanta Das at a press briefing scheduled at 0630 GMT.

Comments

Comments are closed.

India bond yields rise as RBI hikes rate by 50 bps

Death toll in Peshawar mosque suicide blast passes 90

Dar meets IMF review mission, apprises it of planned power sector reforms

Intra-day update: rupee sees some improvement against US dollar

Intra-day update: Bull run at PSX, KSE-100 up over 750 points

Pakistan’s performance worsens, ranks remains same in corruption perception index

Indus Motor to shut down plant for two weeks

Toshakhana case: Islamabad court decides to indict Imran Khan on February 7

Bangladesh secures $4.7bn from IMF as other South Asian countries see delays

Central banks bought the most gold since 1967 last year, WGC says

Talks with IMF team: Doubts exist about Dar-led team’s capability