AIRLINK 195.30 Decreased By ▼ -2.67 (-1.35%)
BOP 9.87 Decreased By ▼ -0.17 (-1.69%)
CNERGY 7.33 Increased By ▲ 0.04 (0.55%)
FCCL 39.03 Increased By ▲ 3.03 (8.42%)
FFL 16.50 Decreased By ▼ -0.41 (-2.42%)
FLYNG 27.54 Increased By ▲ 2.50 (9.98%)
HUBC 131.61 Decreased By ▼ -2.42 (-1.81%)
HUMNL 13.80 Decreased By ▼ -0.34 (-2.4%)
KEL 4.67 Decreased By ▼ -0.11 (-2.3%)
KOSM 6.64 Decreased By ▼ -0.30 (-4.32%)
MLCF 45.30 Increased By ▲ 0.32 (0.71%)
OGDC 214.51 Decreased By ▼ -3.72 (-1.7%)
PACE 6.89 Decreased By ▼ -0.05 (-0.72%)
PAEL 40.10 Decreased By ▼ -1.32 (-3.19%)
PIAHCLA 16.80 Decreased By ▼ -0.06 (-0.36%)
PIBTL 8.35 Decreased By ▼ -0.11 (-1.3%)
POWER 9.49 Increased By ▲ 0.10 (1.06%)
PPL 182.50 Decreased By ▼ -3.43 (-1.84%)
PRL 41.80 Increased By ▲ 0.53 (1.28%)
PTC 24.53 Decreased By ▼ -0.24 (-0.97%)
SEARL 103.00 Decreased By ▼ -1.65 (-1.58%)
SILK 1.00 Decreased By ▼ -0.01 (-0.99%)
SSGC 39.49 Decreased By ▼ -1.42 (-3.47%)
SYM 17.30 Decreased By ▼ -0.75 (-4.16%)
TELE 8.77 Decreased By ▼ -0.14 (-1.57%)
TPLP 12.71 Decreased By ▼ -0.13 (-1.01%)
TRG 65.49 Decreased By ▼ -1.11 (-1.67%)
WAVESAPP 11.14 Decreased By ▼ -0.16 (-1.42%)
WTL 1.71 Decreased By ▼ -0.07 (-3.93%)
YOUW 3.96 Decreased By ▼ -0.04 (-1%)
BR100 11,988 Decreased By -121.3 (-1%)
BR30 36,198 Decreased By -400.2 (-1.09%)
KSE100 113,443 Decreased By -1598.8 (-1.39%)
KSE30 35,635 Decreased By -564.3 (-1.56%)

MUMBAI: Indian government bond yields were marginally higher on Monday as oil prices continued to move up, laying the ground for selling on profit after last week’s drop.

The benchmark 10-year yield was at 7.3150% as of 10:10 a.m. IST, after closing at 7.3003% on Friday.

The yield fell seven basis points last week, its biggest weekly drop in six.

With both India’s and the United States’ retail inflation numbers already reported, traders were looking to book some profit, and the rise in oil prices provided that opportunity, a trader with a state-run bank said.

Headline retail inflation for India eased to 5.72% in December from 5.88% in the prior month, while U.S consumer prices on a month-on-month basis fell for the first time in more than 2-1/2 years in December.

Meanwhile oil prices rose, with the benchmark Brent crude moving higher in all five trading sessions of last week, on optimism that China’s reopening will lift fuel demand from the world’s top crude importer, and also as the US dollar dropped to a seven-month low.

The benchmark Brent crude contract rose above $85 per barrel, and jumped 8.5% last week, biggest such move in three months. India is one of the largest importer of the commodity, and its price has a direct impact on local retail inflation.

The RBI has raised repo rate by 225 basis points in 2022 in its fight against inflation and is expected to raise one more time in February.

Traders further said, the federal budget continues to be the next major trigger which will provide a firm direction to bond yields.

Benchmark bond yield above 7.30% ahead of debt auction

Citi expects the government to gross borrow 15 trillion Indian rupees in the next financial year, even as Goldman Sachs has pegged the number at 16.80 trillion rupees.

Meanwhile, India aims to switch bonds worth 110 billion rupees ($1.35 billion) later in the day.

Also read:

Comments

Comments are closed.