AIRLINK 173.15 Increased By ▲ 15.74 (10%)
BOP 10.65 Increased By ▲ 0.28 (2.7%)
CNERGY 8.52 Increased By ▲ 0.20 (2.4%)
CPHL 97.46 Increased By ▲ 4.57 (4.92%)
FCCL 47.25 Increased By ▲ 0.52 (1.11%)
FFL 15.42 Increased By ▲ 0.54 (3.63%)
FLYNG 28.13 Increased By ▲ 1.15 (4.26%)
HUBC 138.91 Increased By ▲ 4.90 (3.66%)
HUMNL 12.81 Increased By ▲ 0.29 (2.32%)
KEL 4.54 Increased By ▲ 0.33 (7.84%)
KOSM 5.55 Increased By ▲ 0.16 (2.97%)
MLCF 62.26 Increased By ▲ 1.38 (2.27%)
OGDC 214.75 Increased By ▲ 6.23 (2.99%)
PACE 5.55 Increased By ▲ 0.15 (2.78%)
PAEL 44.86 Increased By ▲ 4.08 (10%)
PIAHCLA 18.70 Decreased By ▼ -0.10 (-0.53%)
PIBTL 10.74 Increased By ▲ 0.76 (7.62%)
POWER 12.26 Increased By ▲ 0.30 (2.51%)
PPL 173.87 Increased By ▲ 5.10 (3.02%)
PRL 36.22 Increased By ▲ 1.19 (3.4%)
PTC 23.56 Increased By ▲ 0.57 (2.48%)
SEARL 95.31 Increased By ▲ 2.21 (2.37%)
SSGC 39.13 Increased By ▲ 3.56 (10.01%)
SYM 14.02 Increased By ▲ 0.36 (2.64%)
TELE 7.23 Increased By ▲ 0.28 (4.03%)
TPLP 10.29 Increased By ▲ 0.29 (2.9%)
TRG 64.68 Increased By ▲ 4.01 (6.61%)
WAVESAPP 10.04 Increased By ▲ 0.34 (3.51%)
WTL 1.33 Increased By ▲ 0.03 (2.31%)
YOUW 3.70 Increased By ▲ 0.05 (1.37%)
BR100 12,492 Increased By 252.4 (2.06%)
BR30 37,694 Increased By 1300.9 (3.57%)
KSE100 116,189 Increased By 2036.1 (1.78%)
KSE30 35,750 Increased By 549.8 (1.56%)

MUMBAI: Indian government bonds are expected to trade largely unchanged on Wednesday after the benchmark yield breached a key level in the previous session, as investor focus remains on the Federal Reserve’s monetary policy decision and outlook.

The 10-year yield is likely to move between 6.73% and 6.77%, a trader with a private bank said, compared with the previous close of 6.7588%.

“More than the decision, the economic projections as well as the dot plot for 2025 are important triggers for the market, which will dominate the next direction for Treasuries as well as local bonds,” the trader said.

The Fed’s policy decision will come after Indian markets close on Wednesday.

While the US central bank is widely expected to cut interest rates by 25 basis points, markets are fearing an uncertain outlook and cautious commentary for 2025.

Inflation remains above the Fed’s 2% target, which is expected to be highlighted by the central bank and could go against the doves.

India bond yields rise in lead up to domestic inflation data

The debt market will also focus on the Fed’s quarterly economic projections and the dot plot, which had showed in September a policy rate of 3.4% by the end of 2025.

The 10-year Treasury yield remained around the 4.40% mark in Asia hours, with the odds of a 25-bp cut at over 97%. However, the chances of a reduction in January are just around 16%, according to the CME FedWatch Tool.

Locally, markets are awaiting debt supply as well as minutes of the Reserve Bank of India’s December meeting, both due on Friday.

New Delhi aims to raise 290 billion rupees ($3.42 billion)through sale of bonds, which includes a new five-year bonds.

The RBI maintained status quo on policy rates earlier this month, but infused liquidity into the banking system through a cut in banks’ cash reserve ratio.

Comments

200 characters