Dollar sale also helped; Such high surplus likely to be one-off
Treasury will continue to take action to ... stop evasion by the Kremlin and its oligarch enablers, said US Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson
The numbers tell the story. Last year, investors pocketed nearly $900 billion in annual interest from US government debt, double the average over the previous decade
U.S. Treasury wants to enhance the power of a little-known, secretive government committee to review deals made between U.S. firms and foreign investors. This comes as high-profile deals involving foreign investment in the U.S. like Chinese firm ByteDance's ownership of popular social media app TikTok and Japanese firm Nippon Steel's bid to purchase Pittsburgh-based U.S. Steel Corp. receive increased scrutiny by lawmakers and even President Joe Biden. A new proposed rulemaking would strengthen powers for the interagency Committee on Foreign Investment in the United States known as CFIUS which is tasked with investigating corporate deals for national security concerns and holds power to force the company to divest ownership or change major parts of the firm. The rulemaking if finalized would expand the committee's subpoena authority, allow the committee to request more information from parties to a proposed sale and expand circumstances when fines can be imposed and their size
New 10-year bond becomes the second most traded
On Tuesday, data showed inflation fell in six economically important German states, while national figures showed domestic price pressures eased to their lowest in nearly three years
The yield on the benchmark 10-year government bond fell by four basis points to settle at 7.05 per cent on Thursday, against 7.09 per cent on Wednesday
The yield on the benchmark 10-year government bond touched the day's low of 7.02 per cent as the government announced lower-than-expected gross borrowing for financial year 2024-25 on Thursday
The hardening of US Treasury yields also weighed on sentiment and raised concerns about whether the Federal Reserve would lower interest rates at the same pace as the Street has priced
It's an almost farcical conclusion to 12 months of trading that saw rates on the benchmark - a global anchor for markets and US mortgage rates - tumble to as low as 3.25 per cent
Indian government bond yields were largely flat on Wednesday in yet another trading session, amid consolidation after their recent decline and as traders awaited more directional triggers
Axis Mutual Fund on Tuesday launched an open-ended fund of ETF -- wherein the underlying investments comprise US treasury securities -- and is expecting to garner at least Rs 100 crore in the opening week. The seventh largest fund house expects to mop up at least Rs 500 crore from the US treasury dynamic bond ETF in the next one year. The fund house said the NFO, which will be managed by Vinayak Jayanath, will close on December 19. If redeemed/switched-out within one month from the date of allotment, the fund house will charge an exit load of 0.25 per cent, it said, adding that if redeemed after one month from the date of allotment, there will be no such charges. The ETF is benchmarked against the Bloomberg US intermediate treasury index, and has the primary investment objective of providing regular income by investing in units of overseas ETFs, B Gop Kumar, the chief executive of the company, said.
The dollar gained as investors took profits on bets it would weaken further and shrugged off economic data suggesting the Fed could be done hiking rates
Yellen added that she discussed China's growth slowdown with APEC, who agreed that it presented 'downside risk to the economic outlook' particularly for APEC nations with strong trade ties to Beijing
The price of 22-carat gold slid Rs 150, with the yellow metal selling at Rs 56,100
The selling pressure was less intense in the broader markets
The central bank had not given any timeline for OMO sales and said it will depend on the ongoing liquidity situation
Market participants said that India's bond inclusion in J P Morgan index further aided inflows in the domestic debt market
Foreign exchange reserves have declined by around $25 billion from the highest point in 2023
There could be losses in these funds if interest rates rise or the rupee appreciates