India's benchmark bond breaks 4-day falling streak as value investors return
MUMBAI: Indian government bonds snapped a four-session falling streak on Tuesday, after the yield rising to a three-year high attracted investors back to the market. A policy rate hike and liquidity withdrawal by the central bank had pushed the benchmark bond yield up by 20 basis points over four sessions. The 6.94% 2036 bond ended at 7.3655% against 7.3857% in the previous session. The rupee…
MUMBAI saw Indian government bonds break a four-day falling streak on Tuesday, as investors returned to the market. The benchmark bond yield reached a three-year high, prompting a rise of 20 basis points over four sessions. The 6.94% 2036 bond closed at 7.3655%, down from 7.3857% in the previous session. A policy rate hike and liquidity withdrawal by the central bank contributed to the yield surge.
Meanwhile, the rupee outperformed regional peers, finishing 0.5% higher against the dollar at 95.28, thanks to central bank measures to relieve pressure on the Asian currency and possible spot market intervention. Harsimran Sahni, associate director and head of treasury at Anand Rathi Global Finance, noted that the 10-year bond yield has supported the market in the 7.40% range.
However, any additional open market operation sales could push the 10-year benchmark yield toward the 7.60–7.65% range.
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