10-year bond yield eases 10 bps to 7.31% in sharpest fall since April
The 10-year bond yield experienced a notable decline to 7.31% following a decrease in oil prices. This decline represented the steepest drop observed since early April of this year. Oil prices fell nearly 5%, retreating from a six-month peak that occurred last week. Traders are currently holding back on taking fresh positions as they await the US midterm elections.
Mumbai: The 10-year bond yield has dropped 10 basis points to 7.31%, the steepest one-day decline since early April, following a sharp decrease in oil prices that has boosted demand for the paper. The yield began the day at 7.40% and continued to fall throughout the day, mirroring the fall in oil prices. However, traders are cautious about making new investments before the US midterm elections take place on Tuesday.
Brent crude futures experienced a 5% drop, reaching $108 per barrel in Asian trade, after peaking last week. The easing of crude prices and the strengthening of the rupee have provided some stability to the market, according to Gopal Tripathi, head of treasury and capital markets at Jana Small Finance Bank.
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