AIRLINK 172.40 Decreased By ▼ -0.75 (-0.43%)
BOP 10.59 Decreased By ▼ -0.06 (-0.56%)
CNERGY 8.39 Decreased By ▼ -0.13 (-1.53%)
CPHL 103.71 Increased By ▲ 6.25 (6.41%)
FCCL 46.40 Decreased By ▼ -0.85 (-1.8%)
FFL 15.40 Decreased By ▼ -0.02 (-0.13%)
FLYNG 27.50 Decreased By ▼ -0.63 (-2.24%)
HUBC 137.70 Decreased By ▼ -1.21 (-0.87%)
HUMNL 12.85 Increased By ▲ 0.04 (0.31%)
KEL 4.48 Decreased By ▼ -0.06 (-1.32%)
KOSM 5.41 Decreased By ▼ -0.14 (-2.52%)
MLCF 61.64 Decreased By ▼ -0.62 (-1%)
OGDC 214.00 Decreased By ▼ -0.75 (-0.35%)
PACE 5.47 Decreased By ▼ -0.08 (-1.44%)
PAEL 46.55 Increased By ▲ 1.69 (3.77%)
PIAHCLA 18.85 Increased By ▲ 0.15 (0.8%)
PIBTL 10.63 Decreased By ▼ -0.11 (-1.02%)
POWER 12.51 Increased By ▲ 0.25 (2.04%)
PPL 171.75 Decreased By ▼ -2.12 (-1.22%)
PRL 36.21 Decreased By ▼ -0.01 (-0.03%)
PTC 23.47 Decreased By ▼ -0.09 (-0.38%)
SEARL 98.35 Increased By ▲ 3.04 (3.19%)
SSGC 40.18 Increased By ▲ 1.05 (2.68%)
SYM 13.99 Decreased By ▼ -0.03 (-0.21%)
TELE 7.22 Decreased By ▼ -0.01 (-0.14%)
TPLP 10.23 Decreased By ▼ -0.06 (-0.58%)
TRG 64.00 Decreased By ▼ -0.68 (-1.05%)
WAVESAPP 10.08 Increased By ▲ 0.04 (0.4%)
WTL 1.32 Decreased By ▼ -0.01 (-0.75%)
YOUW 3.67 Decreased By ▼ -0.03 (-0.81%)
BR100 12,425 Decreased By -66.4 (-0.53%)
BR30 37,569 Decreased By -125.2 (-0.33%)
KSE100 115,765 Decreased By -424.2 (-0.37%)
KSE30 35,535 Decreased By -215.3 (-0.6%)

MUMBAI: Indian government bond yields moved marginally lower in early deals on Wednesday, ahead of the start of the central bank’s liquidity infusion into the banking system later this week.

Bond yields rose in the previous session after a brief fall due to profit booking, traders said.

The 10-year bond yield was at 6.6846% as of 10:00 a.m. IST, compared with the previous close of 6.6888%.

The yield hit a near three-year low of 6.6254% on Tuesday.

As part of a large liquidity package announced on Monday, the Reserve Bank of India will buy bonds worth up to 200 billion rupees ($2.31 billion) on Thursday and conduct a $5 billion dollar/rupee buy/sell swap a day later.

“Underlying sentiment is supportive for a bullish move, but traders are holding back to see the central bank’s response for the first debt purchase, which will be a crucial signal for yields,” a trader with a state-run bank said.

On Monday, the RBI announced a host of measures to infuse up to 1.50 trillion rupees into the banking system, which includes bond purchases of 600 billion rupees and a 56-day repo for 500 billion rupees, as well as the FX swap.

Analysts said these measures could be a precursor to a rate cut in February.

India’s federal budget announcement is due on Saturday, followed by the Reserve Bank of India’s monetary policy decision on Feb. 7.

India bond yields to tumble after RBI’s liquidity action

Market participants would focus on the fiscal deficit target as well as borrowing numbers for the next financial year in the budget, while awaiting announcements to boost slowing growth.

Economists in a Reuters poll expect New Delhi to stick to the fiscal deficit target of 4.5% of gross domestic product, with gross borrowing forecast at 14.28 trillion rupees.

Comments

200 characters