AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

MUMBAI: Indian bond yields edged lower on Monday, despite an uptick in global crude oil prices as a risk-off trade in global markets saw the domestic sharemarkets crash and the rupee pushed to near two-month lows.

Traders said expectations of the Reserve Bank of India staying accomodative aided sentiment for bonds even as global crude oil prices surged, which can push up domestic inflation.

India's benchmark 10-year bond yield ended trading at 6.67%, down 3 basis points from its previous close and off its session high of 6.72%.

"While the RBI may choose to normalise the policy corridor over the next six months, we now expect the repo rate hikes to begin in Q3 22 (August policy meeting), with risks of delays," Rahul Bajoria, an economist at Barclays wrote in a note.

India central bank committed to inflation target, says chief

India's central bank is committed to its inflation mandate and the likely uptick in January inflation towards the upper end of its target band should not create any panic, RBI Governor Shaktikanta Das said.

Das reiterated that their inflation projection of 4.5% in 2022/23 was robust and made after taking into account various crude oil levels and scenarios. January inflation data is due at 1200 GMT.

The RBI left key rates unchanged and retained its accommodative policy stance last week, as it sought to ensure a more broad-based recovery and downplayed the risks from inflation.

Oil prices were steady in seesaw trading, after hitting a more than seven-year high on fears that a possible invasion of Ukraine by Russia could trigger US and European sanctions that would disrupt exports from one of the world's top producers.

Traders said the possibility of the remaining two auctions in the current financial year getting cancelled after the government's decision to cancel the previous week's auction was also helping.

The partially convertible rupee ended at 75.6050/6150 per dollar, after touching 75.64, its lowest level since Dec. 22. It had ended at 75.38 on Friday. Stock indexes dropped more than 3% each.

"Crude is causing a global risk-off but RBI is looking for growth and ignoring inflation till the end of the year," a senior fixed income trader at a private bank said.

"Bond yields should remain rangebound for now and dance to the news flow but post second half of March when the supplies are in focus, that is when reality will hit," he added.

Comments

Comments are closed.