AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)

MUMBAI: Indian government bond yields were lower in the early session on Thursday as focus shifted to moves in US peers as well as oil prices, with the market digesting Prime Minister Narendra Modi’s smaller victory margin for a third term.

India’s benchmark 10-year yield was at 7.0183% as of 10:00 a.m. IST, following its previous close of 7.0272%.

“The market has now started looking beyond the election results and we are seeing some reaction to the recent fall in US yields and oil prices,” the trader said.

“Only if we see any issue in cabinet formation, we may react again.”

US yields continued their decline on weaker-than-expected job growth data ahead of Friday’s highly anticipated government employment report for May.

The weak economic data this week has boosted expectations that the US Federal Reserve will deliver two rate cuts of 25 basis points (bps) each this year.

The odds of a rate cut in September have risen to 69%, up from 47% a week earlier, while the Fed is pegged to cut rates by 49 bps in 2024, according to the CME FedWatch tool.

In India, the Modi-led ruling Bharatiya Janata Party won 240 seats, short of a simple majority in the 543-member house, while an alliance led by him won 293 seats, much smaller than what was predicted in the exit polls.

India bonds not reacting to strong domestic growth, yields little changed

fund managers said Indian government bonds will continue to attract foreign flows even as a narrower-than-expected victory margin for the Modi-led alliance could prompt a shift in policy.

The central government is set to conduct its fifth buyback for the current financial year later in the day, and the market does not expect strong offers.

The Reserve Bank of India’s monetary policy decision is due on Friday, wherein most market participants are anticipating a status quo in rates as well as stance, with a major focus on guidance.

Comments

Comments are closed.