AGL 38.54 Increased By ▲ 0.97 (2.58%)
AIRLINK 129.50 Decreased By ▼ -3.00 (-2.26%)
BOP 5.61 Decreased By ▼ -0.03 (-0.53%)
CNERGY 3.86 Increased By ▲ 0.09 (2.39%)
DCL 8.73 Decreased By ▼ -0.14 (-1.58%)
DFML 41.76 Increased By ▲ 0.76 (1.85%)
DGKC 88.30 Decreased By ▼ -1.86 (-2.06%)
FCCL 35.00 Decreased By ▼ -0.08 (-0.23%)
FFBL 67.35 Increased By ▲ 0.85 (1.28%)
FFL 10.61 Increased By ▲ 0.46 (4.53%)
HUBC 108.76 Increased By ▲ 2.36 (2.22%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.75 Decreased By ▼ -0.11 (-2.26%)
KOSM 6.95 Increased By ▲ 0.10 (1.46%)
MLCF 41.65 Decreased By ▼ -0.15 (-0.36%)
NBP 59.60 Increased By ▲ 1.02 (1.74%)
OGDC 183.00 Increased By ▲ 1.75 (0.97%)
PAEL 26.25 Increased By ▲ 0.55 (2.14%)
PIBTL 5.97 Increased By ▲ 0.14 (2.4%)
PPL 146.70 Decreased By ▼ -1.70 (-1.15%)
PRL 23.61 Increased By ▲ 0.39 (1.68%)
PTC 16.56 Increased By ▲ 1.32 (8.66%)
SEARL 68.30 Decreased By ▼ -0.49 (-0.71%)
TELE 7.23 Decreased By ▼ -0.01 (-0.14%)
TOMCL 35.95 Decreased By ▼ -0.05 (-0.14%)
TPLP 7.85 Increased By ▲ 0.45 (6.08%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.45 Decreased By ▼ -0.40 (-0.79%)
UNITY 26.75 Increased By ▲ 0.35 (1.33%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,806 Increased By 37.8 (0.39%)
BR30 29,678 Increased By 278.1 (0.95%)
KSE100 92,304 Increased By 366.3 (0.4%)
KSE30 28,840 Increased By 96.6 (0.34%)

MUMBAI: Indian government bond yields started the week higher, as they rose for second straight session on Monday, tracking similar movement in U.S. peers last week.

The 10-year benchmark 7.26% 2033 bond yield ended at 7.0488%, after closing at 7.0140% on Thursday. Indian government bond markets were closed on Friday for a local holiday.

U.S. yields rose on Friday after stronger economic data showed that the U.S. Federal Reserve will have to hike interest rates to control inflation.

The 10-year U.S. bond yield rose by nearly 10 basis points (bps) and was last at 3.4654%. The upward move in longer-dated U.S. Treasury yields marked a reversal in course seen in the prior week, when investors bet that the Fed would start cutting rates from next quarter.

Domestic benchmark bond yield had briefly moved below the key 7%-mark last week after the U.S. central bank hinted at a pause following a widely-expected 25 bps rate hike.

However, traders expect profit booking, and do not foresee a repeat of this move in the near term.

“With some clarity on the Federal Reserve’s policy outlook, any sharp movement in bond yields is unlikely,” said Ajay Manglunia, managing director and head of investment grade group at JM Financial.

“The RBI rate cuts are still some time away so there is no strong cue immediately for the 10-year benchmark to sustain below 7% in the near term.”

While the Fed has signalled a pause in its tightening cycle, any tilt towards hawkishness could influence the Reserve Bank of India’s (RBI) policy outlook.

The RBI had surprised the markets with a status quo on rates in April, raising the bets of a prolonged pause.

Traders will also focus on U.S. retail inflation data due on Wednesday and Indian retail inflation data due on Friday.

Comments

Comments are closed.