The yield on benchmark 10-year Indian government bonds was 7.2740% at 0440 GMT, after closing at 7.2769% on Monday. In early trades on Tuesday, the yield had touched 7.2971%, the highest since Aug. 25.
Yield has risen 17 basis points over the past four sessions.
“There is no major bullish factor that can ease the bearish sentiment that is currently prevalent,” said a trader at a private bank. “We expect volumes to remain low today and tomorrow.”
Sentiment was cautious as bonds followed the moves of US Treasuries.
The benchmark 10-year U.S. Treasury yield hit its highest level since 2011 on Monday as investors adjusted to the prospect that the Federal Reserve will raise rates higher and for longer than expected.
Two-year yields jumped to their highest level since November 2007. The two-year yield generally reflects interest rate expectations.
The Fed’s policy decision is expected on Wednesday, with markets pricing a 19% chance of a 100 basis point hike.
Several banks and brokerages expect the RBI to raise policy rates by 50 basis points on September 30, to control stubbornly high inflation that has remained above the central bank’s upper tolerance band. for eight consecutive months.
The central bank raised interest rates by a total of 140 basis points between May and August.
Intraday, Indian states are expected to sell bonds worth 114 billion Indian rupees ($1.43 billion). ($1 = 79.6690 Indian rupees)
The yield on benchmark 10-year Indian government bonds was 7.2740% at 0440 GMT, after closing at 7.2769% on Monday. In early trades on Tuesday, the yield had touched 7.2971%, the highest since Aug. 25.
Yield has risen 17 basis points over the past four sessions.
“There is no major bullish factor that can ease the bearish sentiment that is currently prevalent,” said a trader at a private bank. “We expect volumes to remain low today and tomorrow.”
Sentiment was cautious as bonds followed the moves of US Treasuries.
The benchmark 10-year U.S. Treasury yield hit its highest level since 2011 on Monday as investors adjusted to the prospect that the Federal Reserve will raise rates higher and for longer than expected.
Two-year yields jumped to their highest level since November 2007. The two-year yield generally reflects interest rate expectations.
The Fed’s policy decision is expected on Wednesday, with markets pricing a 19% chance of a 100 basis point hike.
Several banks and brokerages expect the RBI to raise policy rates by 50 basis points on September 30, to control stubbornly high inflation that has remained above the central bank’s upper tolerance band. for eight consecutive months.
The central bank raised interest rates by a total of 140 basis points between May and August.
Intraday, Indian states are expected to sell bonds worth 114 billion Indian rupees ($1.43 billion). ($1 = 79.6690 Indian rupees)
