India bonds bound in tight range with fewer cues in sight
The yield on the benchmark 10-year bond ended at 6.3058%, compared with Thursday's close of 6.3010%.
India's ultra-long bonds rallied during the day, led by the 30-year paper, with the yield down 4 basis points after stronger-than-expected demand at New Delhi's debt sale.
India's Bajaj Finserv mutual fund and Bandhan mutual fund find this space attractive and are running positions in the 30-year paper.
New Delhi sold bonds worth 270 billion rupees ($3.14 billion) during the day, including 120 billion rupees worth of 7.09% 2054 bond at 6.98% yield, which was lower than market estimates.
Meanwhile, rate-cut bets in the market are inching up after a six-year low inflation print in June, traders said.
India bonds stuck as trading interest plummets
'Other than the base-effect driven decline in food inflation, most other measures of underlying inflation are already around 4%, indicating scope for just one more rate cut. While we anticipate it in October 2025, the risk is it can be brought forward,' ANZ Research said in a note.
Lower US Treasury yields aided sentiment during the day, with the yield on the 10-year bond at 4.43% in Asian hours, down 3 basis points from previous close.
Rates
India's overnight index swap rates (OIS) saw receiving pressure during the day, amid rising rate-cut wagers and lower U.S. Treasury yields.
Activity in India's one-year overnight index swaps, however, has dried up since the central bank started conducting operations to remove liquidity from the banking system. The RBI began conducting these variable rate reverse repos from June 27.
The one-year OIS rate was down 1 basis point at 5.50% and the two-year OIS rate similarly fell to 5.47%. The liquid five-year dropped 2 basis points to 5.70%.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Putin meets India's security chief after US tariff hike over Russian oil
The Kremlin published footage of Putin shaking hands with Ajit Doval. PHOTO:AFP Listen to article Russian President Vladimir Putin met India's national security advisor on Thursday, a day after Washington hiked tariffs on New Dehli over its purchases of Moscow's oil. US President Donald Trump imposed the additional 25-percent tariff on Indian goods, coming into place in three weeks, as part of a campaign to pressure Russia into ending its offensive of Ukraine by affecting its trade partners. India is a major buyer of Russian oil, a key source of revenue for Moscow's state budget. Russia is also one of India's top arms suppliers and the warm ties between the two countries date back to the Soviet era. Read More: Pakistan warns India of deep strikes The Kremlin published footage of Putin shaking hands with Ajit Doval, though provided no details of their discussions. At an earlier meeting in Moscow, Doval said that the dates for a visit to India by Putin were "almost finalized". The Kremlin slammed calls to "force countries to sever trading relations" with Russia as "illegitimate", without directly mentioning Trump. Ukraine's Western allies have sought to cut Russia's export earnings since Moscow launched its military assault in February 2022. Also Read: India feels the pinch as Trump doubles tariffs But Russia has been able to redirect energy sales away from Europe to countries including India and China, ensuring the multi-billion-dollar flow of funds has continued. India has argued it imported oil "from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict".
Express Tribune
3 hours ago
- Express Tribune
Pakistan Refinery to buy its first Nigerian Bonny Light oil from Vitol, sources say
Listen to article Pakistan Refinery Limited will import its first cargo of Nigerian Bonny Light crude from Vitol in September, two sources familiar with the matter said, as Asian refiners shift towards cheaper alternatives to Middle Eastern oil. The 500,000-barrel, light-sweet crude cargo is expected to load later this month and arrive in Karachi by late September, the sources said, declining to be named as the information is not yet public. The price was not immediately known. The purchase follows Pakistan's first deal to import US crude, also supplied by Vitol, by Cnergyico, which is scheduled to arrive in October. Almost all of Pakistan's crude imports are sourced from the Middle East, primarily Saudi Arabia and the United Arab Emirates. Also Read: Tarbela spillways opened as dam filled to capacity However, along with other Asian refiners, Pakistan's industry has shown increased interest in recent months in supplies from elsewhere, including US West Texas Intermediate and Kazakh CPC Blend, after Middle Eastern supplies became more expensive. As early as 2014, Pakistan imported a Nigerian Yoho crude, according to data from Kpler, but the Bonny Light purchase is the country's first known purchase of Bonny Light, which is valued for its high yields of gasoline and diesel. Oil is Pakistan's largest import item, with crude and petroleum products of $11.3 billion in the fiscal year ended June 30, 2025 representing nearly a fifth of the country's total import bill.
Business Recorder
5 hours ago
- Business Recorder
India's Modi and Brazil's Lula talk after Trump announces more tariffs on Indian goods
Indian Prime Minister Narendra Modi and Brazil's President Luiz Inácio Lula da Silva spoke by phone on Thursday, Modi's office said in a statement, a day after the Brazilian leader said he would initiate a conversation among the BRICS group on tackling U.S. President Donald Trump's tariffs. 'The two leaders exchanged views on various regional and global issues of mutual interest,' Modi's office said in the statement, without explicitly mentioning Trump or his tariffs. The BRICS group also includes Russia and South Africa. Putin meets India's security chief amid US tariffs row India is already signalling it may seek to rebalance its global partnerships after Trump's salvo of tariffs on Indian goods. Trump announced an additional 25% tariff on Indian goods on Wednesday, raising the total duty to 50% — among the highest imposed on any U.S. trading partner. The additional tariff, effective August 28, is meant to penalise India for continuing to buy Russian oil, Trump has said. Modi is preparing for his first visit to China in more than seven years, suggesting a potential diplomatic realignment amid growing tensions with Washington.
