G-Sec 10-year yields come down 5 bps to 7.39% on Fed signals
The yield on 10-year benchmark government bonds decreased to 7.39% on Thursday, marking the largest fall since July. US Treasury yields eased following comments from the Federal Reserve indicating a less hawkish stance. Oil prices declined modestly, contributing to the drop in bond yields. Forecasts suggest bond yields may rise to 7.70% to 7.75% by December. The rupee remained almost unchanged,…
Mumbai: The yield on 10-year Indian government bonds experienced a significant decline, falling 5 basis points to 7.39% on Thursday, marking its largest decrease since July, according to CCIL data. This drop was primarily driven by a surge in US Treasury yields and a modest decrease in oil prices. On the previous trading day, the 10-year yield had been recorded at 7.44%.
The Federal Reserve's recent comments on the future rate path were interpreted by markets as indicating a less restrictive stance, leading to a more favorable outlook for bond yields. Despite the decline in yields, market projections suggest a potential range of 7.70% to 7.75% by December. Axis Bank has further predicted a yield of 8% by June 2027.
The auction of ₹33,000 crore of bonds was scheduled for Friday, with a portion of ₹3,000 crore being allocated for a 30-year green bond. Meanwhile, the Indian rupee remained stable at 95.26 against the US dollar, after initially fluctuating throughout the day. The rupee's performance was influenced by the RBI's potential intervention and the impact of softer oil prices on the dollar index, which had dipped to 102.2 following a period of reaching its lowest level in two weeks.
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