Latest news with #KhushiMalhotra
Yahoo
13-05-2025
- Business
- Yahoo
Indian rupee, bonds poised to rally on ceasefire with Pakistan
By Jaspreet Kalra and Khushi Malhotra MUMBAI (Reuters) -The Indian rupee and bonds are expected to soar this week after a truce was reached and held between nuclear-armed rivals India and Pakistan following the worst clashes between them in nearly three decades. Indian share benchmarks jumped nearly 4% on Monday to log their best day in four years after a ceasefire was announced over the weekend. The rupee and bond markets were closed for a local holiday. Global equities also soared after the U.S. and China reached a deal to slash reciprocal tariffs. The Chinese yuan hit a six-month high while the dollar index rose 1% on easing fears of a damaging trade war between the world's two largest economies. The rupee is set to recoup last week's losses, which were spurred by an intensification of the India-Pakistan conflict and the currency is likely to benefit from a stronger yuan as well, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. The rupee closed at 85.37 against the U.S. dollar on Friday, falling 0.9% in that week. Traders expect the rupee to strengthen past the 85 mark while encountering resistance around 84.60 and 84.40 levels. Meanwhile, Indian government bond yields are expected to ease back to levels seen before the India-Pakistan conflict flared up last week. The yield on the 10-year benchmark bond rose to a high of 6.44% before closing at 6.37% on Friday. The ceasefire has calmed wary investors, who are likely to resume building positions after the major selloff, traders said. The yield on the benchmark 10-year bond is expected to trade between 6.30% and 6.33% this week, a trader at a private bank said, with a focus on inflation data, the central bank's debt purchase and an auction. "U.S.-China trade agreement is also a positive for bonds as it is good for the rupee and will further support sentiment," said Debendra Kumar Dash, senior vice president of treasury at AU Small Finance Bank. India's consumer inflation data for April is due on Tuesday. Economists polled by Reuters expect the key price gauge to have declined to a near six-year low of 3.27%. The Reserve Bank of India is scheduled to purchase 250 billion rupees ($2.95 billion) of bonds on Thursday and New Delhi will sell bonds worth 250 billion rupees on Friday. U.S. consumer price inflation and retail sales data, due this week, will be eyed for cues on future Federal Reserve policy rate actions. KEY EVENTS: ** India consumer price inflation - May 13, Tuesday (4:00 p.m. IST) ** U.S. consumer price inflation - May 13, Tuesday (6:00 p.m. IST) ** U.S. initial weekly jobless claims for week between 3 May and 9 May - May 15, Thursday (6:00 p.m. IST) ** U.S. retail sales - May 15, Thursday (6:00 p.m. IST) ** U.S. industrial production - May 15, Thursday (6:00 p.m. IST) ($1 = 84.8570 Indian rupees) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Indian rupee, bonds poised to rally on ceasefire with Pakistan
By Jaspreet Kalra and Khushi Malhotra MUMBAI (Reuters) -The Indian rupee and bonds are expected to soar this week after a truce was reached and held between nuclear-armed rivals India and Pakistan following the worst clashes between them in nearly three decades. Indian share benchmarks jumped nearly 4% on Monday to log their best day in four years after a ceasefire was announced over the weekend. The rupee and bond markets were closed for a local holiday. Global equities also soared after the U.S. and China reached a deal to slash reciprocal tariffs. The Chinese yuan hit a six-month high while the dollar index rose 1% on easing fears of a damaging trade war between the world's two largest economies. The rupee is set to recoup last week's losses, which were spurred by an intensification of the India-Pakistan conflict and the currency is likely to benefit from a stronger yuan as well, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. The rupee closed at 85.37 against the U.S. dollar on Friday, falling 0.9% in that week. Traders expect the rupee to strengthen past the 85 mark while encountering resistance around 84.60 and 84.40 levels. Meanwhile, Indian government bond yields are expected to ease back to levels seen before the India-Pakistan conflict flared up last week. The yield on the 10-year benchmark bond rose to a high of 6.44% before closing at 6.37% on Friday. The ceasefire has calmed wary investors, who are likely to resume building positions after the major selloff, traders said. The yield on the benchmark 10-year bond is expected to trade between 6.30% and 6.33% this week, a trader at a private bank said, with a focus on inflation data, the central bank's debt purchase and an auction. "U.S.-China trade agreement is also a positive for bonds as it is good for the rupee and will further support sentiment," said Debendra Kumar Dash, senior vice president of treasury at AU Small Finance Bank. India's consumer inflation data for April is due on Tuesday. Economists polled by Reuters expect the key price gauge to have declined to a near six-year low of 3.27%. The Reserve Bank of India is scheduled to purchase 250 billion rupees ($2.95 billion) of bonds on Thursday and New Delhi will sell bonds worth 250 billion rupees on Friday. U.S. consumer price inflation and retail sales data, due this week, will be eyed for cues on future Federal Reserve policy rate actions. KEY EVENTS: ** India consumer price inflation - May 13, Tuesday (4:00 p.m. IST) ** U.S. consumer price inflation - May 13, Tuesday (6:00 p.m. IST) ** U.S. initial weekly jobless claims for week between 3 May and 9 May - May 15, Thursday (6:00 p.m. IST) ** U.S. retail sales - May 15, Thursday (6:00 p.m. IST) ** U.S. industrial production - May 15, Thursday (6:00 p.m. IST) ($1 = 84.8570 Indian rupees) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Indian rupee, bonds poised to rally on ceasefire with Pakistan
By Jaspreet Kalra and Khushi Malhotra MUMBAI (Reuters) -The Indian rupee and bonds are expected to soar this week after a truce was reached and held between nuclear-armed rivals India and Pakistan following the worst clashes between them in nearly three decades. Indian share benchmarks jumped nearly 4% on Monday to log their best day in four years after a ceasefire was announced over the weekend. The rupee and bond markets were closed for a local holiday. Global equities also soared after the U.S. and China reached a deal to slash reciprocal tariffs. The Chinese yuan hit a six-month high while the dollar index rose 1% on easing fears of a damaging trade war between the world's two largest economies. The rupee is set to recoup last week's losses, which were spurred by an intensification of the India-Pakistan conflict and the currency is likely to benefit from a stronger yuan as well, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. The rupee closed at 85.37 against the U.S. dollar on Friday, falling 0.9% in that week. Traders expect the rupee to strengthen past the 85 mark while encountering resistance around 84.60 and 84.40 levels. Meanwhile, Indian government bond yields are expected to ease back to levels seen before the India-Pakistan conflict flared up last week. The yield on the 10-year benchmark bond rose to a high of 6.44% before closing at 6.37% on Friday. The ceasefire has calmed wary investors, who are likely to resume building positions after the major selloff, traders said. The yield on the benchmark 10-year bond is expected to trade between 6.30% and 6.33% this week, a trader at a private bank said, with a focus on inflation data, the central bank's debt purchase and an auction. "U.S.-China trade agreement is also a positive for bonds as it is good for the rupee and will further support sentiment," said Debendra Kumar Dash, senior vice president of treasury at AU Small Finance Bank. India's consumer inflation data for April is due on Tuesday. Economists polled by Reuters expect the key price gauge to have declined to a near six-year low of 3.27%. The Reserve Bank of India is scheduled to purchase 250 billion rupees ($2.95 billion) of bonds on Thursday and New Delhi will sell bonds worth 250 billion rupees on Friday. U.S. consumer price inflation and retail sales data, due this week, will be eyed for cues on future Federal Reserve policy rate actions. KEY EVENTS: ** India consumer price inflation - May 13, Tuesday (4:00 p.m. IST) ** U.S. consumer price inflation - May 13, Tuesday (6:00 p.m. IST) ** U.S. initial weekly jobless claims for week between 3 May and 9 May - May 15, Thursday (6:00 p.m. IST) ** U.S. retail sales - May 15, Thursday (6:00 p.m. IST) ** U.S. industrial production - May 15, Thursday (6:00 p.m. IST) ($1 = 84.8570 Indian rupees)
Mint
30-04-2025
- Business
- Mint
Indian bond yields edge higher as traders book profits
MUMBAI, April 30 (Reuters) - Indian government bond yields rose in early deals on Wednesday, with traders paring positions to book profits before the sale of a new 10-year bond on Friday. The benchmark 10-year yield was at 6.3573% as of 10:35 a.m. IST, compared with the previous close of 6.3419%. The Indian bond market will be shut on Thursday due to a local holiday. 'As expected, we are seeing some consolidation in the benchmark at around 6.34%-6.35% levels, and we do not expect any major moves ahead of the holiday, with action shifting to Friday when a new 10-year bond would be sold,' a trader with a primary dealership said. The Reserve Bank of India will sell a new 10-year bond on Friday, which is likely to attract strong bidding interest, traders said. Investors have largely been selling bonds to make room for the new 10-year benchmark paper, they said. The Reserve Bank of India is set to purchase government bonds worth up to 1.25 trillion rupees ($14.7 billion) through four tranches in the next three weeks. Overall market sentiment has been upbeat since the Reserve Bank of India announced a larger-than-expected bond purchase plan for May. The current demand-supply dynamics in the domestic bond market favour a downward trend in yields, traders said. The central bank's bond purchase plan and upcoming bond redemptions have pushed net debt supply in the April-to-June quarter to nearly nil. India's overnight index swap rates were steady even as U.S. Treasury yields dropped on Tuesday, as profit booking in the domestic market offset the receiving bias. The 5-year swap rate, which is more sensitive to U.S. Treasuries, continued to decline while the shorter tenor swaps held pat. The one-year OIS rate was flat at 5.67%, the two-year OIS rate was little changed at 5.52%, while the five-year OIS rate declined 2 basis points to 5.63%. ($1 = 85.1250 Indian rupees) (Reporting by Khushi Malhotra; Editing by Mrigank Dhaniwala) First Published: 30 Apr 2025, 10:40 AM IST
Mint
29-04-2025
- Business
- Mint
Indian bond yields slide as RBIs bond buy plan aids sentiment
MUMBAI, April 29 (Reuters) - Indian government bond yields plunged in early deals on Tuesday, as market participants were taken by surprise by the central bank's larger-than-expected bond-buying plan for next month. The benchmark 10-year bond yield was at 6.3537% as of 10:15 a.m. IST, compared with its previous close of 6.3959%. "As expected, we had a gap down opening for yields, with the benchmark bond yield hitting 6.32%, but some consolidation is expected around current levels before the next leg of rally begins," a trader with a private bank said. The Reserve Bank of India said after market hours on Monday that it will buy bonds worth 1.25 trillion rupees ($14.70 billion) in four tranches in the first three weeks of May. The announcement propped up sentiment. The yield on the 10-year bond hit a near two-week high of 6.4029% on Monday, amid fears that the RBI will pause its bond purchases ahead of its dividend announcement, which generally happens by the end of May. Investors now expect the benchmark bond yield to test 6.30% levels in the coming days, given that there are no major negative triggers. Further boosting sentiment is New Delhi's upcoming issuance of the new 10-year bond on Friday, which will replace the existing benchmark paper. India's banking system liquidity surplus is currently a tad below 1 trillion rupees. Later in the day, the RBI will buy bonds worth 200 billion rupees, taking the quantum of its purchases to 1.20 trillion rupees for April. India's overnight index swap (OIS) rates declined due to a strong receiving bias after the RBI announced the fresh liquidity injection plan, which will aid the transmission of further rate cuts. A further decline in U.S. yields will also favour receiving. The one-year OIS rate dropped 6 basis points to 5.66%, while the two-year OIS rate fell 6 basis points to 5.51% and the five-year OIS rate was 6 basis points lower at 5.64%. ($1 = 85.0530 Indian rupees) (Reporting by Khushi Malhotra Editing by Eileen Soreng) First Published: 29 Apr 2025, 10:20 AM IST
