Bombay:
Indian government bond yields traded marginally lower on Monday as investors continued to add positions, while the strengthening of the local currency further helped risk sentiment.
The Indian benchmark 10-year bond yield was 7.4529%, as of 0445 GMT. The return ended Friday at 7.4691% and rose five basis points last week.
The Indian markets are closed on Tuesday due to a local holiday.
“There hasn’t been much change in most factors, but the rupee’s rise gives investors some confidence to add debt at current levels,” said a trader at a state bank.
The Indian rupee rose to its highest level in more than two weeks, supported by an optimistic note of risk in Asia and the fall of the dollar following the release of the US jobs report. The unit stood at 82.20 for the dollar.
The benchmark Brent crude oil contract eased Monday, after rising 4% on Friday, after Chinese officials reiterated their commitment to a strict COVID-19 containment approach, raising hopes of a recovery in oil demand among the world’s largest importer of crude oil was thwarted.
The contract traded 1% lower at $97.50 a barrel. India is one of the largest importers of crude oil and higher crude oil prices are impacting domestic inflation.
India’s October retail inflation rate is expected next month, and its value has remained above 6% since January and accelerated to a five-month high of 7.41% yoy in September as food prices rose.
Deutsche Bank expects retail inflation to decline to 6.8% in October. The Monetary Policy Committee of the Reserve Bank of India met on Thursday to discuss the bank’s report to the government after it failed to meet its inflation targets for three consecutive quarters.
Meanwhile, 10 states are aiming to raise rupees 95.23 billion ($1.16 billion) through the sale of debt.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)
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