Bond yields seen rising as jump in US peers, local inflation hurt
时间:2024-06-02 06:02:31 阅读(143)
The government bond yields are expected to rise sharply in the early session on Thursday, tracking the U.S. peers, while local inflation jumped the most in 15 months.
The benchmark 7.26% 2033 bond yield is likely to be in the 7.23-7.27% range after ending the previous session at 7.2034%, a trader with a primary dealership bank said. India’s fixed income markets were closed on Tuesday and Wednesday.
U.S. yields continued to rise, and the move got a push after minutes from the Federal Reserve’s July meeting showed that officials were divided over the need for more interest rate hikes, though “most” policymakers continued to prioritise the battle against inflation.
The Fed had raised rate by 25 basis points in July to 5.25%-5.50% range, with the probability of another hike in September now at around 14%.
Even though the market is not expecting another hike, consensus indicates rates staying elevated longer, driving a sustained uptick in U.S. yields. The 10-year yield hit 4.2880%, the highest in nearly 10 months, while the two-year yield was hovering around the 5% mark.
Back home, retail inflation in July rose to its highest in 15 months as vegetable and cereals prices skyrocketed, beating all market expectations. Inflation spiked to 7.44% in July from 4.87% in the previous month. A Reuters poll of 53 economists had forecast a rate of 6.40%.
The July figure was the highest since April 2022 and breached the upper end of the central bank’s inflation band of 2%-6% for the first time in five months, which could prompt the bank to turn more hawkish.
猜你喜欢
- F&O Outlook- Nifty trend positive till index remains above 17700, below this, exit longs; keep watch on USDINR
- FII DII data- FPI sold shares worth Rs 1449
- Nifty’s 15180 intact, technical indicators hint at pullback from oversold territory; 20-DEMA placed at 15880
- Nifty to snap losing streak or slip under 19300- See GIFT Nifty, FII data, F&O ban, crude before market opens
- Nifty to reclaim or 18700 or bears to drag index below 18400- 7 things to know before share market opens
- Struggling with grey hair- Doctors explain why you shouldn’t pluck them
- No new enquiries for travel to Maldives- Tour operators’ body
- FII, DII data- FPIs sold shares worth Rs 1816 Cr, DIIs added shares worth Rs 1622 Cr on November 1, Wednesday
- Tata Motors rating – Buy- A good show in Q4 in the face of challenges