Bond yields jump tracking U.S. peers, rupee’s slide weighs

Author of the article: MUMBAI — Indian government bond yields climbed on Thursday, tracking a sharp spike in U.S. yields, while the rupee teetering at record lows also weighed on sentiment. The benchmark 10-year government bond yield was at 7.5076% as of 0500 GMT, after ending at 7.4510% on Wednesday. Financial Post Top Stories Sign…
Bond yields jump tracking U.S. peers, rupee’s slide weighs

Author of the article:

MUMBAI — Indian government bond yields climbed on Thursday, tracking a sharp spike in U.S. yields, while the rupee teetering at record lows also weighed on sentiment.

The benchmark 10-year government bond yield was at 7.5076% as of 0500 GMT, after ending at 7.4510% on Wednesday.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

“The entire bullishness after the minutes (of the Reserve Bank of India’s policy meeting) is completely wiped off after the recent movements in U.S. Treasuries as well as the local currency,” a trader with a private bank said.

“The market is bracing for debt supply tomorrow, and any fall below 7.50% for the day can be safely ruled out.”

The Indian rupee slid to a record low for a second consecutive day on Thursday, as the dollar’s surge, on fears over rising interest rates, dragged on Asian currencies broadly.

The rupee breached the key 83-per-dollar mark to fall to a record low of 83.20.

New Delhi is set to raise 280 billion Indian rupees ($3.37 billion) through the sale of bonds on Friday, which includes 120 billion rupees of the benchmark paper.

A selloff in U.S. Treasuries pushed the benchmark 10-year yield to a 14-year high, as investors largely shrugged off a weak housing report and expect the Federal Reserve to remain aggressive in tightening rates.

The two-year yield, a more direct indicator of rate expectations, jumped to its highest level in over 15 years.

The Fed has already raised rates by 300 basis points since March and is expected to hike rates by 75 bps in each of its next two meetings.

Such aggressive hikes may put pressure on the Reserve Bank of India to follow suit. The minutes of RBI’s latest meeting had indicated a softer guidance on policy rates.

Meanwhile, Churchil Bhatt, an executive vice president of debt investments at Kotak Life Insurance, said government debt is likely to remain a more attractive investment proposition than corporate debt as tight spreads do not justify the risks for the latter.

“Given the tight credit spreads, the sovereign curve looks better placed,” Bhatt said. ($1 = 83.1700 Indian rupees) (Reporting by Dharamraj Dhutia; Editing by Savio D’Souza)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Russia energy revenue may be higher now than before Ukraine war, U.S. official says
Read More

Russia energy revenue may be higher now than before Ukraine war, U.S. official says

Author of the article: WASHINGTON — Russia may be getting more revenue from its fossil fuels now than before its invasion of Ukraine, as global price increases offset the impact of western efforts to restrict its sales, U.S. energy security envoy Amos Hochstein told lawmakers during a hearing on Thursday. “I can’t deny that,” Hochstein…
Victory Square Technologies Reports Full Year 2021 Financial Results & 2021 Recap
Read More

Victory Square Technologies Reports Full Year 2021 Financial Results & 2021 Recap

Author of the article: 2021 unaudited Net Asset Value (“NAV”) increased to $102,269,229 from $51,258,000 in 2020 VANCOUVER, British Columbia, June 03, 2022 (GLOBE NEWSWIRE) — Victory Square Technologies Inc. (“Victory Square” or the “Company”) (CSE:VST) (OTC:VSQTF) (FWB:6F6), a company that provides VC Investment access to a diverse portfolio of next generation technology companies within…
Hedge funds eye U.S. bond boost after bruising Q1: McGeever
Read More

Hedge funds eye U.S. bond boost after bruising Q1: McGeever

Author of the article: ORLANDO — For the U.S. bond market, the first quarter was marked by historically high volatility and the poorest performance in decades. Hedge funds scored badly, and will be hoping for a better showing in the second quarter. U.S. futures market positioning in the first week of the new quarter showed…
Inflation is Making the English Breakfast Even More Indulgent
Read More

Inflation is Making the English Breakfast Even More Indulgent

Preparing English breakfasts is around 18% more expensive than a year ago, in yet another indicator of how the cost-of-living crisis is squeezing UK household budgets. Author of the article: Bloomberg News Irina Anghel and Katie Linsell ihcmfmd]xb4]ly2[4os)5w5n_media_dl_1.png Bloomberg RSS (Bloomberg) — Preparing English breakfasts is around 18% more expensive than a year ago, in…