logo
India bond yields dip, tracking US Treasury peers, oil prices

India bond yields dip, tracking US Treasury peers, oil prices

MUMBAI: Indian government bond yields eased on Tuesday, in line with their U.S. Treasury peers and lower oil prices, while elevated liquidity levels further supported the market.
The yield on the benchmark 10-year note ended at 6.2927%, compared with the previous close of 6.3241%.
The 10-year U.S. Treasury yield fell to 4.1929% in Asian hours, its lowest level in 2 months, versus the previous close of 4.2260%.
Oil prices remained subdued and was last at $67.27 per barrel, about $11 lower than June's high of $78.85 per barrel.
'People are taking a view at the start of the quarter, with some building positions as the U.S. yields and oil prices have fallen,' said Debendra Kumar Dash, senior vice president of treasury at AU Small Finance Bank.
'Ample liquidity in the system is also providing comfort, so some investment demand has emerged.'
India's daily average banking system liquidity surplus rose to 2.74 trillion rupees in June, marking its highest level in three years.
Traders are now awaiting cues on the Reserve Bank of India's liquidity moves after it conducted a seven-day variable rate reverse repo (VRRR) auction on Friday, withdrawing 850 billion rupees from the banking system.
The weighted average call rate rose to 5.50% on Monday, reaching the central bank's policy rate for the first time in the financial year.
Weighted average TREPS rate also rose to 5.42%.
Foreign investors also stepped up purchases in the second half of June, offsetting the majority of the selling in the first half.
They had net sold over 130 billion rupees in bonds by June 18, but the figure narrowed to 7.2 billion rupees for the month, CCIL data showed.
Rates
India's overnight index swap rates saw receiving bias on Tuesday, with the longer-duration rates leading the fall.
The one-year OIS rate dropped 1 basis point to 5.52%, while the two-year OIS rate declined 2 bps to 5.49%, and the most liquid five-year dropped 4 basis points to 5.67%.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

India's Apollo Hospitals beats estimates for Q1 profit on strong demand
India's Apollo Hospitals beats estimates for Q1 profit on strong demand

Business Recorder

time6 hours ago

  • Business Recorder

India's Apollo Hospitals beats estimates for Q1 profit on strong demand

HYDERABAD: India's Apollo Hospitals Enterprise on Tuesday reported its fifth straight quarterly profit rise, beating analysts' estimates on higher demand for its healthcare services. The hospital chain operator reported a consolidated net profit that rose 41.8% to 4.33 billion rupees ($49.40 million) for the April-June quarter. Analysts, on average, had expected of 3.86 billion rupees, according to data compiled by LSEG. Indian hospital chains such as Apollo and Manipal have been increasing their bed count for a larger share of the market, including through acquisitions of smaller hospital operators. Temasek-backed Manipal acquired a majority stake in local peer Sahyadri Hospitals last month. Apollo said it is on track to add 4,370 beds over the next 3-4 years through acquisition, setting up new hospitals, aswell as expansion of existing facilities. The hospital operator had 8,030 operational beds as of June 30. Occupancy rate for the quarter, however, saw a slight dip to 65% from 68% last year. Total revenue for the first quarter rose 15% to 58.42 billion rupees beating estimates of 57.44 billion rupees, aided by a 12% growth in the healthcare services business that contributes more than half of the total revenue. The company expects double-digit revenue growth for the current financial year. Its offline pharmacy and digital healthcare business reported a 19% rise in revenue. Apollo spun off the business recently and aims to list it as a separate entity in the next 18-21 months.

India's RBI allows ‘vostro' accounts to invest entire surplus in government securities
India's RBI allows ‘vostro' accounts to invest entire surplus in government securities

Business Recorder

time6 hours ago

  • Business Recorder

India's RBI allows ‘vostro' accounts to invest entire surplus in government securities

BENGALURU: India's central bank said on Tuesday foreign investors may invest the surplus balance in their so-called 'vostro' accounts into central government securities. Vostro accounts are typically held by a domestic bank on behalf of a foreign bank in which trading partners can hold rupee-denominated balances emerging from trade transactions. 'Persons resident outside India that maintain a special rupee vostro account (SRVA) for international trade settlement in Indian rupees … may invest their rupee surplus balance in the aforesaid account in central government securities,' a Reserve Bank of India notification said. In 2022, the RBI had allowed overseas banks to open SRVAs to settle trade transactions in rupee as part of its efforts to boost the currency's 'internationalisation'. India central bank issues final co-lending framework effective January 2026 The holders of such accounts can invest in Indian government debt without registering as foreign portfolio investors, as overseas investors have to. However, the government slapped a limit of using only 30% of account balances to buy securities with residual maturity under one year, including treasury bills. Reuters reported in May that the central bank had sought the government's approval to remove this cap on foreign banks with vostro accounts to boost rupee-denominated investment and trade. The RBI has approved 123 correspondent banks from 30 trading partner countries to open 156 SRVAs with 26 Indian banks topromote bilateral trade in local currencies, a junior trade minister told Parliament earlier this year.

KSE-100 closes above 147,000 for first time in history
KSE-100 closes above 147,000 for first time in history

Business Recorder

time7 hours ago

  • Business Recorder

KSE-100 closes above 147,000 for first time in history

The Pakistan Stock Exchange (PSX) continued its record-breaking rally as its benchmark KSE-100 Index closed Tuesday's session above 147,000, another all-time high. The KSE-100 started the session with a strong buying spree, hitting an intra-day high of 147,976.98, followed by selling in the latter hours, which erased most of the earlier gains. However, at close, the benchmark index still managed to closed above 147,000 for first time in history. It settled at 147,005.32, up by 75.48 points or 0.05%. Positive momentum in BAFL, HBL, and SYS provided a combined uplift of 295 points, offering partial reprieve against broader market weakness. In contrast, significant downward pressure stemmed from FFC, MARI, OGDC, PSO, and BAHL, which together shaved off 527 points from the benchmark, brokerage house Topline Securities said in its post-market report. Analysts attributed the investor optimism to encouraging corporate earnings and reports of upcoming US investments in Pakistan's energy sector. In an informal discussion upon his return from the United States, Finance Minister Muhammad Aurangzeb said that Pakistan will soon receive encouraging news of substantial investments across various sectors from the US. The minister described the trade talks with the US as a major success for the country, noting that Pakistan is moving in the right direction and the results will be visible soon. On Monday, the bulls stamped their authority on the PSX, as the benchmark KSE-100 Index surged 1,547.05 points, or 1.06%, to close at 146,929.84. Globally, most Asian stocks rose on Tuesday, buoyed by an extension of a tariff truce between the world's two largest economies, while Japanese shares hit an all-time peak, powered by tech shares after returning from a long weekend break. US President Donald Trump extended a tariff truce with China by another 90 days on Monday, staving off triple-digit duties on Chinese goods, a move that was largely expected by investors and markets. Investor sentiment in recent weeks has been supported by expectations of rate cuts by the US Federal Reserve, resilient US corporate earnings, and clarity on US trade levies on trading partners. Japan's Nikkei climbed to a record high and was last up 2% as the country's markets reopened after a public holiday on Monday, tracking other global indices this year. Australia's benchmark index also hit a record high, ahead of a monetary policy meeting at which the central bank is widely expected to cut interest rates. That left MSCI's broadest index of Asia-Pacific shares outside Japan a tad higher. China's blue-chip stocks were flat while Hong Kong's Hang Seng index eased 0.1% in early trading. Meanwhile, the Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday. At close, the currency settled at 282.42, a gain of Re0.03. Volume on the all-share index increased to 691.66 million from 611.21 million recorded in the previous close. The value of shares rose to Rs44.58 billion from Rs44.00 billion in the previous session. Yousuf Weaving was the volume leader with 46.27 million shares, followed by Kohinoor Spining with 39.95 million shares, and Invest Bank with 34.39 million shares. Shares of 482 companies were traded on Tuesday, of which 208 registered an increase, 242 recorded a fall, while 32 remained unchanged.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store