scorecardresearchIndian bond yields track U.S. peers higher, up after 9-session slide

Indian bond yields track U.S. peers higher, up after 9-session slide

Updated: 03 Aug 2022, 10:46 AM IST
TL;DR.

India's 10-year benchmark bond yield was at 7.2294%, as of 0420 GMT, after rising to 7.2526% in early trade. The yield had dropped 25 basis points in the last nine sessions, closing at 7.1962% on Tuesday.

FILE PHOTO: A trader looks at a screen at a stock brokerage firm in Mumbai March 7, 2008. REUTERS/Arko Datta (INDIA)

FILE PHOTO: A trader looks at a screen at a stock brokerage firm in Mumbai March 7, 2008. REUTERS/Arko Datta (INDIA)

(Reuters) - Indian government bond yields rose on Wednesday after a nine-session slide, tracking a spike in U.S. Treasury yields, with market participants now awaiting the Reserve Bank of India's monetary policy decision on Friday.

India's 10-year benchmark bond yield was at 7.2294%, as of 0420 GMT, after rising to 7.2526% in early trade. The yield had dropped 25 basis points in the last nine sessions, closing at 7.1962% on Tuesday.

"Local bonds are reacting to their U.S. counterparts, but still we do not see the benchmark yield crossing 7.25% till Friday's policy decision and commentary," a trader with a state-run bank said.

On Tuesday, two U.S. Federal Reserve officials signalled that the central bank remained committed to hiking interest rates to a level that would further curb economic activity, pushing U.S. 10-year yields 14 bps higher. [US/]

The RBI monetary policy committee's decision is due on Friday, with views on the quantum of rate increase widely split between 25 basis points and 50 basis points, according to a Reuters poll of economists.

Barclays expects the RBI to hike its repo rate by 35 bps on Friday to 5.25%, which could be followed up by two more hikes of 25 bps each in September and December. The RBI has raised rates by 90 basis points since May.

 

First Published: 03 Aug 2022, 10:46 AM IST