Bond Yields

The Reserve Bank of India sold 364-day notes at a 7.48% yield, the highest since October 2018, while the 10-year benchmark 7.26% 2032 bond yield was at 7.46%.

The decision on Feb. 1 triggered the biggest drop in the benchmark 10-year bond yields in over two months. Bonds have since pared their gains, with the budget math increasingly looking daunting.

The government is expected to announce a record gross borrowing of 16 trillion rupees ($196.28 billion) for 2023-24 when it presents the federal budget on Feb. 1, according to a Reuters poll of economists.

Most market participants expect benchmark yields to remain in a thin range till December-end, on low trading volumes and the absence of fresh cues.

"The worst part of dollar strength globally is behind us, which means that currencies should not be unduly stressed against the dollar," said Rajeev Mohan, president and head - treasury & global markets at Kotak Mahindra Bank.

The Indian government bond yield curve could invert, with the benchmark 10-year bond yield easing below those of shorter tenor securities, the treasury head of private lender Axis Bank said today.

Indian government bond yields traded marginally lower on Monday, as investors continue to add positions, while the strengthening of local currency further aided risk sentiment.

Indian government bonds with a one- to five-year tenure are primed for medium-term gains at current levels, a fixed income official at LIC Mutual Fund said.

Gold prices slipped on Wednesday, as the dollar and U.S. Treasury yields climbed to multi-year peaks after hawkish rhetoric by Federal Reserve officials fuelled expectations of aggressive interest rate hikes.

Gold prices dipped on Tuesday, weighed down by a firmer dollar and elevated US bond yields, as the Federal Reserve gears up for a hefty rate hike to tame inflation pressures.

Gold prices fell on Wednesday, as the US dollar and Treasury yields jumped after upbeat economic data bolstered expectations that the Federal Reserve will continue hiking interest rates aggressively.

The government bond yields ended higher for a second consecutive session on Friday, as weekly auction added to debt supply, while elevated US Treasury yields dented appetite.

The government bond yields ended higher on Thursday, as traders trimmed bond holdings to make room for Friday's debt sale.

A two-month rally in government bonds that pushed yields down by as much as 26 basis points on benchmark tenors is running into resistance from inflation concerns and global monetary policy tightening, analysts said.

The government bond yields fell on Tuesday, as sentiment was supported by expectation of progress towards inclusion of bonds in global indices.

The Reserve Bank of India sold 364-day notes at a 7.48% yield, the highest since October 2018, while the 10-year benchmark 7.26% 2032 bond yield was at 7.46%.

The decision on Feb. 1 triggered the biggest drop in the benchmark 10-year bond yields in over two months. Bonds have since pared their gains, with the budget math increasingly looking daunting.

The government is expected to announce a record gross borrowing of 16 trillion rupees ($196.28 billion) for 2023-24 when it presents the federal budget on Feb. 1, according to a Reuters poll of economists.

Most market participants expect benchmark yields to remain in a thin range till December-end, on low trading volumes and the absence of fresh cues.

"The worst part of dollar strength globally is behind us, which means that currencies should not be unduly stressed against the dollar," said Rajeev Mohan, president and head - treasury & global markets at Kotak Mahindra Bank.

The Indian government bond yield curve could invert, with the benchmark 10-year bond yield easing below those of shorter tenor securities, the treasury head of private lender Axis Bank said today.

Indian government bond yields traded marginally lower on Monday, as investors continue to add positions, while the strengthening of local currency further aided risk sentiment.

Indian government bonds with a one- to five-year tenure are primed for medium-term gains at current levels, a fixed income official at LIC Mutual Fund said.

Gold prices slipped on Wednesday, as the dollar and U.S. Treasury yields climbed to multi-year peaks after hawkish rhetoric by Federal Reserve officials fuelled expectations of aggressive interest rate hikes.

Gold prices dipped on Tuesday, weighed down by a firmer dollar and elevated US bond yields, as the Federal Reserve gears up for a hefty rate hike to tame inflation pressures.

Gold prices fell on Wednesday, as the US dollar and Treasury yields jumped after upbeat economic data bolstered expectations that the Federal Reserve will continue hiking interest rates aggressively.

The government bond yields ended higher for a second consecutive session on Friday, as weekly auction added to debt supply, while elevated US Treasury yields dented appetite.

The government bond yields ended higher on Thursday, as traders trimmed bond holdings to make room for Friday's debt sale.

A two-month rally in government bonds that pushed yields down by as much as 26 basis points on benchmark tenors is running into resistance from inflation concerns and global monetary policy tightening, analysts said.

The government bond yields fell on Tuesday, as sentiment was supported by expectation of progress towards inclusion of bonds in global indices.