India Government Bonds Hold Steady as Softer US Yields Offset Oil Price Risks
· Business · Economic Times, Wall Street Journal, The Independent
Indian government bonds traded in a narrow range as support from softer US Treasury yields countered rising crude oil prices. The benchmark 6.94% 2036 bond yielded 6.8170%, holding relatively flat compared to the previous close. Brent crude futures climbed 0.6% to $91.60 a barrel in Asian trade following statements from US President Donald Trump regarding Iran and the blocked Strait of Hormuz. Domestic long-term investors and state-run lenders acted as value buyers to restrain yield increases. Market participants are now awaiting the release of the RBI policy minutes.
Why it matters
Fluctuations in global crude oil prices directly impact India's import bill, rupee valuation, and domestic bond yields as the world's third-largest oil importer.
Read the original report — Economic Times
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