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Economic Times
07-05-2025
- Business
- Economic Times
10-yr bond yields rise 8 bps to close at 6.438% after India strikes terror bases in Pakistan
Indian 10-year bond yields closed 1.5% or 8 bps up at 6.438 on Wednesday following an early morning strike by the Indian armed forces in Pakistan. The country launched Operation Sindoor, targeting terror camps in Pakistan and Pakistan Occupied Kashmir (PoK) where multiple Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM) training facilities were destroyed. ADVERTISEMENT The yield on 10-year bond yield with a coupon of 6.79% and the maturity of April 2034 hit the day's high of 6.454%. The day's range has been 6.430%-6.454%. The outlook for bonds is generally bullish as we expect rate cuts to happen, as inflation has been tamed and CPI is running well below the RBI target of 4%. Two risks to our view are the war against Pakistan and an unfavourable monsoon, resulting in higher inflation. RBI is expected to cut rates at least 2-3 times in the current year resulting in repo rates falling to 5.25/5.50%. Over the last 1-year, it has fallen by 9.29%. "Traders had lighter books, because they had previously sold on geopolitical tensions, and yesterday (Tuesday) we saw a good participation in the RBI's open market operation," a Reuters report said, quoting Umesh Tulsyan, managing director at Sovereign Global Markets. Traders are likely building their positions back following India's strikes on Pakistan, according to Tulsyan. "We are seeing strong buying in the market and expect the momentum to continue," he added. Meanwhile, the Indian equity markets were quite volatile with NIfty moving in a 220 points range. Today, the headline index closed at 24,409.30, gaining by 29.70 points or 0.12% over the Tuesday closing price. ADVERTISEMENT The gains were led by auto, bank and consumer stocks. The Nifty Auto index jumped 1.7% while Nifty Bank ended 0.6% higher. The Nifty Consumer Durables was up by over 1%.Also read: Nifty muscle memory check: India-Pakistan conflicts have meant 5% dip. Will this time be different? India employed a range of high-precision, long-range strike weapons during the operation, including the SCALP cruise missile, the HAMMER precision-guided bomb, and loitering munitions. Additionally, the government categorically said that "no Pakistani military facilities were targeted". (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
07-05-2025
- Business
- Time of India
10-yr bond yields rise 8 bps to close at 6.438% after India strikes terror bases in Pakistan
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Indian 10-year bond yields closed 1.5% or 8 bps up at 6.438 on Wednesday following an early morning strike by the Indian armed forces in Pakistan. The country launched Operation Sindoor , targeting terror camps in Pakistan and Pakistan Occupied Kashmir (PoK) where multiple Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM) training facilities were yield on 10-year bond yield with a coupon of 6.79% and the maturity of April 2034 hit the day's high of 6.454%. The day's range has been 6.430%-6.454%.The outlook for bonds is generally bullish as we expect rate cuts to happen, as inflation has been tamed and CPI is running well below the RBI target of 4%. Two risks to our view are the war against Pakistan and an unfavourable monsoon, resulting in higher inflation. RBI is expected to cut rates at least 2-3 times in the current year resulting in repo rates falling to 5.25/5.50%.Over the last 1-year, it has fallen by 9.29%."Traders had lighter books, because they had previously sold on geopolitical tensions, and yesterday (Tuesday) we saw a good participation in the RBI's open market operation," a Reuters report said, quoting Umesh Tulsyan, managing director at Sovereign Global Markets. Traders are likely building their positions back following India's strikes on Pakistan, according to Tulsyan. "We are seeing strong buying in the market and expect the momentum to continue," he the Indian equity markets were quite volatile with NIfty moving in a 220 points range. Today, the headline index closed at 24,409.30, gaining by 29.70 points or 0.12% over the Tuesday closing gains were led by auto, bank and consumer stocks. The Nifty Auto index jumped 1.7% while Nifty Bank ended 0.6% higher. The Nifty Consumer Durables was up by over 1%.India employed a range of high-precision, long-range strike weapons during the operation, including the SCALP cruise missile, the HAMMER precision-guided bomb, and loitering the government categorically said that "no Pakistani military facilities were targeted".
Economic Times
07-05-2025
- Business
- Economic Times
Indian bond yields dip as traders see buying window
Indian government bond yields dropped in early deals on Wednesday, despite caution after India attacked Pakistan and Pakistan-administered Kashmir, with traders pointing to likely bargain buying by investors who lightened positions over the last few days. ADVERTISEMENT The benchmark 10-year yield was at 6.3416% as of 10:50 a.m. IST, compared with its previous close of 6.3508%. "Traders had lighter books, because they had previously sold on geopolitical tensions, and yesterday (Tuesday) we saw a good participation in the RBI's open market operation," said Umesh Tulsyan, managing director at Sovereign Global Markets. Traders are likely building their positions back following India's strikes on Pakistan, according to Tulsyan. "We are seeing strong buying in the market and expect the momentum to continue," he said. New Delhi said it conducted a military operation in Pakistan across nine locations in the south Asian neighbour's territory as well as Pakistan-administered Kashmir. Investors are closely watching the news for any response from Pakistan for deciding on further trading action. ADVERTISEMENT Foreign banks turned net bond sellers on Monday, ending a three-week buying streak. They sold bonds worth 22.7 billion rupees on a net basis on Tuesday. Primary dealers also emerged as sellers, paring positions worth 33 billion rupees. Meanwhile, the Reserve Bank of India is set to auction treasury bills worth 190 billion rupees ($2.25 billion) later in the day. ADVERTISEMENT Traders will also watch for the U.S. Federal Reserve's policy decision due later on Wednesday, where the Fed is widely expected to keep the interest rates unchanged. ADVERTISEMENT India's overnight index swap rates fell on receiving bias, tracking moves in the secondary government bond market. The one-year OIS rate fell 3 basis points to 5.60%, while the two-year OIS rate dropped 2 basis points to 5.47%, and the most liquid five-year OIS rate was down 4 basis points at 5.58%. ($1 = 84.4990 Indian rupees) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
