AIRLINK 199.00 Increased By ▲ 1.03 (0.52%)
BOP 9.92 Decreased By ▼ -0.12 (-1.2%)
CNERGY 7.61 Increased By ▲ 0.32 (4.39%)
FCCL 38.90 Increased By ▲ 2.90 (8.06%)
FFL 16.87 Decreased By ▼ -0.04 (-0.24%)
FLYNG 27.54 Increased By ▲ 2.50 (9.98%)
HUBC 134.80 Increased By ▲ 0.77 (0.57%)
HUMNL 14.16 Increased By ▲ 0.02 (0.14%)
KEL 4.78 No Change ▼ 0.00 (0%)
KOSM 6.74 Decreased By ▼ -0.20 (-2.88%)
MLCF 46.32 Increased By ▲ 1.34 (2.98%)
OGDC 216.99 Decreased By ▼ -1.24 (-0.57%)
PACE 6.99 Increased By ▲ 0.05 (0.72%)
PAEL 41.00 Decreased By ▼ -0.42 (-1.01%)
PIAHCLA 16.94 Increased By ▲ 0.08 (0.47%)
PIBTL 8.50 Increased By ▲ 0.04 (0.47%)
POWER 9.80 Increased By ▲ 0.41 (4.37%)
PPL 183.68 Decreased By ▼ -2.25 (-1.21%)
PRL 42.35 Increased By ▲ 1.08 (2.62%)
PTC 25.00 Increased By ▲ 0.23 (0.93%)
SEARL 104.48 Decreased By ▼ -0.17 (-0.16%)
SILK 1.00 Decreased By ▼ -0.01 (-0.99%)
SSGC 40.50 Decreased By ▼ -0.41 (-1%)
SYM 17.85 Decreased By ▼ -0.20 (-1.11%)
TELE 8.85 Decreased By ▼ -0.06 (-0.67%)
TPLP 12.96 Increased By ▲ 0.12 (0.93%)
TRG 65.94 Decreased By ▼ -0.66 (-0.99%)
WAVESAPP 11.30 No Change ▼ 0.00 (0%)
WTL 1.76 Decreased By ▼ -0.02 (-1.12%)
YOUW 4.00 No Change ▼ 0.00 (0%)
BR100 12,129 Increased By 19.9 (0.16%)
BR30 36,766 Increased By 167.7 (0.46%)
KSE100 114,967 Decreased By -74.8 (-0.07%)
KSE30 36,134 Decreased By -65.7 (-0.18%)

MUMBAI: Indian government bond yields are expected to start the week with a flattish trend, with focus shifting to domestic factors after the Federal Reserve started its rate easing cycle last week.

The benchmark 10-year yield is likely to move between 6.75% and 6.78% on Monday, compared with its previous close of 6.7626%, a trader with a primary dealership said.

“After an eventful last week, which led to rise in volumes as well as volatility, we may be in for some quiet trading sessions for a couple of days, with the next major triggers being the borrowing calendar,” the trader said.

India is likely to announce its borrowing calendar for October-March this week, with a debt sale worth 340 billion rupees ($4.07 billion), the last debt for the first half of the fiscal year, due on Friday.

New Delhi aims to raise 14.01 trillion rupees via sale of bonds this financial year, and would have completed raising 7.40 trillion rupees by end of this quarter.

The 10-year U.S. yield stayed above 3.70% mark, while the spread with two-year bond yield rose to its widest in 27 months, after Fed Governor Christopher Waller and Philadelphia Fed President Patrick Harker said the path of the economy justified the 50 basis points rate cut.

India bonds steady with focus on 10-year benchmark bond auction

The Fed has projected rates would fall by another 50 bps in 2024 and 100 bps in 2025, according the updated dot plot, but futures market expect cuts of 75 bps in 2024, with a toss up between a 25 or 50 bps cut in November.

The next Fed action would be data dependent and unless growth data worsens significantly, which is a low probability event, subsequent policy action would be a 25 bps cut, Deepak Agrawal, CIO debt at Kotak Mahindra Asset Management Co said.

Comments

200 characters