Fiscal deficit target lower than expected; room for RBI to cut rate
The benchmark 10-year yield ended at 7.1760%, following its previous close at 7.1835%. Indian markets are shut on Friday for a holiday
The yield spread widened to 53 basis points on Tuesday. The last time the yield spread widened above 50 basis points was in January 2022
A rate cut will happen this year. When? It will depend on the growth-inflation dynamics as well as the US Fed action
Germany's 2-year bond yield, which is sensitive to interest rate expectations, was down 1 bp at 2.40%, its lowest since March
With rate cut hopes building up, their performance could improve further in 2024, say experts
We believe US rates have peaked, and the US Federal Reserve can start easing in the second half of 2024. However, the same cannot be said for Indian policy responses
Goa and Haryana secured lower cut-offs at 7.65 per cent, whereas Arunachal Pradesh experienced a higher cut-off
The 10-year benchmark bond yield is expected to move in a range of 7.21%-7.26%, after ending the previous session at 7.2356%, a trader with a primary dealership said
Domestic bond yields were relatively less volatile compared to the US treasury bond yields, as the market was driven by investors rather than traders
The selling pressure was less intense in the broader markets
Closing Bell on Friday November 03: In the broader markets, the BSE MidCap and SmallCap indices gained 0.71 per cent and 0.94 per cent, respectively
The Nifty fell 2.8 per cent in October, and the Sensex by 3 per cent, their biggest fall since December 2022
Foreign exchange reserves have declined by around $25 billion from the highest point in 2023
Analysts, however, see limited room for yields and the dollar to extend gains
Experts cite record high US bond yields, geo-political uncertainties, earnings disappointments as key concerns
The benchmark US 10-year Treasury yield remained high on Tuesday, though it was short of the 5 per cent level
Yields may remain elevated for an extended period
The US macroeconomic data in recent weeks reaffirmed the economy's resilience and strengthened expectations of interest rates remaining higher for longer
An immediate fallout of the developments has been on crude oil prices, which are now nearing $94 a barrel (Brent crude), rising nearly 12 per cent from $84 a barrel a fortnight ago