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Business Recorder
a day ago
- Business
- Business Recorder
India bond yields hit 5-week high as surging oil prices add to bearishness before auction
MUMBAI: Indian government bond yields hit a five-week high on Friday as higher oil prices and caution before the weekly debt auction dampened sentiment. The yield on the benchmark 10-year bond was at 6.3192% as of 10:00 a.m. IST, compared with its previous close of 6.2798%. The most liquid 6.79% 2034 bond yielded 6.3888%, after closing at 6.3439% on Thursday. Yields on these bonds hit a resistance of 6.3316% and 6.4016%, the highest since May 9, earlier in the day. India bond yields dip on value buying, fall in US peers Oil prices jumped more than 13% on Friday after Israel said it struck Iran, targeting its nuclear facilities and ballistic missile factories, to prevent Tehran from building an atomic weapon, which fuelled worries about disruptions in oil supplies. The benchmark Brent crude contract hit $78.50 per barrel, its highest since January 27, and was last up 9% at $75.50 per barrel. India is a major importer of crude oil and higher prices could affect the inflation outlook. Retail inflation eased to 2.82% in May, an over six-year low, from 3.16% in April. 'Oil has suddenly become the most important element to be tracked over the near term and unless we see some meaningful downturn, bonds will continue to remain affected,' a trader at a state-run bank said. Meanwhile, New Delhi will sell bonds worth 300 billion rupees ($3.49 billion) on Friday, including the liquid seven-year paper, with investors remaining cautious after the central bank's change in stance last week. 'Auction demand has now become more crucial and will decide whether the technical upside will be broken,' the trader said. RATES Indian overnight index swap (OIS) rates saw paying pressure across the curve, tracking higher bond yields and oil prices. The one-year OIS rate hit 5.59% after ending at 5.55% on Thursday, while the two-year OIS rate rose 2 basis points to 5.53%. The liquid five-year OIS was the most affected and jumped six bps to 5.79%.
Economic Times
a day ago
- Business
- Economic Times
India bond yields hit 5-week high as surging oil prices add to bearishness before auction
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian government bond yields hit a five-week high on Friday as higher oil prices and caution before the weekly debt auction dampened yield on the benchmark 10-year bond was at 6.3192% as of 10:00 a.m. IST, compared with its previous close of 6.2798%. The most liquid 6.79% 2034 bond yielded 6.3888%, after closing at 6.3439% on on these bonds hit a resistance of 6.3316% and 6.4016%, the highest since May 9, earlier in the prices jumped more than 13% on Friday after Israel said it struck Iran, targeting its nuclear facilities and ballistic missile factories, to prevent Tehran from building an atomic weapon, which fuelled worries about disruptions in oil benchmark Brent crude contract hit $78.50 per barrel, its highest since January 27, and was last up 9% at $75.50 per is a major importer of crude oil and higher prices could affect the inflation outlook Retail inflation eased to 2.82% in May, an over six-year low, from 3.16% in April."Oil has suddenly become the most important element to be tracked over the near term and unless we see some meaningful downturn, bonds will continue to remain affected," a trader at a state-run bank New Delhi will sell bonds worth 300 billion rupees ($3.49 billion) on Friday, including the liquid seven-year paper, with investors remaining cautious after the central bank's change in stance last week."Auction demand has now become more crucial and will decide whether the technical upside will be broken," the trader said. RATES Indian overnight index swap (OIS) rates saw paying pressure across the curve, tracking higher bond yields and oil one-year OIS rate hit 5.59% after ending at 5.55% on Thursday, while the two-year OIS rate rose 2 basis points to 5.53%. The liquid five-year OIS was the most affected and jumped six bps to 5.79%. ($1 = 86.0725 Indian rupees).
Business Recorder
02-05-2025
- Business
- Business Recorder
India bond yields move in narrow range, demand for new 10-year paper key
MUMBAI: Indian government bond yields moved with a marginal upside bias in early deals on Friday, with the major focus remaining on the demand for a new 10-year paper that will be sold at the weekly auction later in the day. The benchmark 10-year bond yield was at 6.3573% as of 10:00 a.m. IST, after closing at 6.3559% in the previous session. The benchmark bond yield declined 22 basis points in the first month of the new financial year, its biggest such drop since March 2020, and this was after a 15-bps decline in March. 'Bond prices have rallied quite a bit in last few weeks, and the move has been very rapid, which has led to some consolidation now,' trader with a state-run bank said. 'If the cutoff for the new 10-year paper is aggressive, we could see some follow up buying in secondary market,' the trader said. New Delhi aims to raise 360 billion rupees ($4.29 billion) through the sale of bonds, including 300 billion rupees of a new 10-year bond, which will replace the existing benchmark bond in coming weeks. Underlying sentiment continued to remain bullish, with the Reserve Bank of India set to buy bonds worth up to 1.25 trillion rupees in four tranches in the next three weeks. Indian bond yields may dip as RBI surprises with another debt purchase The central bank bought bonds worth 1.20 trillion rupees in April. Meanwhile, market participants will continue to remain vigilant for any news related to geopolitical tensions between India and Pakistan. RATES India's overnight index swap rates were marginally lower as receiving bias persisted, despite swaps dropping for four consecutive months through April. The one-year OIS rate was not yet traded after dropping 37 bps last month, while the two-year OIS rate was marginally lower at 5.50%, after falling 34 bps in April. The most liquid five-year swap was also slightly down at 5.61%, after 29-bps fall in April.
Mint
02-05-2025
- Business
- Mint
India bond yields move in narrow range, demand for new 10-year paper key
MUMBAI, May 2 (Reuters) - Indian government bond yields moved with a marginal upside bias in early deals on Friday, with the major focus remaining on the demand for a new 10-year paper that will be sold at the weekly auction later in the day. The benchmark 10-year bond yield was at 6.3573% as of 10:00 a.m. IST, after closing at 6.3559% in the previous session. The benchmark bond yield declined 22 basis points in the first month of the new financial year, its biggest such drop since March 2020, and this was after a 15-bps decline in March. "Bond prices have rallied quite a bit in last few weeks, and the move has been very rapid, which has led to some consolidation now," trader with a state-run bank said. "If the cutoff for the new 10-year paper is aggressive, we could see some follow up buying in secondary market," the trader said. New Delhi aims to raise 360 billion rupees ($4.29 billion) through the sale of bonds, including 300 billion rupees of a new 10-year bond, which will replace the existing benchmark bond in coming weeks. Underlying sentiment continued to remain bullish, with the Reserve Bank of India set to buy bonds worth up to 1.25 trillion rupees in four tranches in the next three weeks. The central bank bought bonds worth 1.20 trillion rupees in April. Meanwhile, market participants will continue to remain vigilant for any news related to geopolitical tensions between India and Pakistan. RATES India's overnight index swap rates were marginally lower as receiving bias persisted, despite swaps dropping for four consecutive months through April. The one-year OIS rate was not yet traded after dropping 37 bps last month, while the two-year OIS rate was marginally lower at 5.50%, after falling 34 bps in April. The most liquid five-year swap was also slightly down at 5.61%, after 29-bps fall in April. ($1 = 83.9290 Indian rupees) (Reporting by Dharamraj Dhutia; Editing by Janane Venkatraman) First Published: 2 May 2025, 10:03 AM IST
