G-Sec 10-year yields come down 5 bps to 7.39% on Fed signals

Agencies

The yield opened at 7.42% on Thursday, and gradually eased during the day to close at 7.39%, CCIL data showed.

US Treasury yields eased after comments from the Federal Reserve on the future rate path were interpreted by markets as signalling a less hawkish stance from policymakers. Oil prices declined to $113 per barrel, from $116 a day earlier, according to Reuters. Domestically, while yields have eased, the outlook is that of weakness, with many projecting a yield of 7.70% to 7.75% by December. Axis Bank has forecasted a yield of 8% by June 2027.

In the current economic climate, AAA-rated corporations are opting to secure financing via the bond market, finding it more cost-effective than traditional bank loans. The recent interest rate hikes by the Reserve Bank of India have further enhanced the appeal of bonds. Companies like REC and SIDBI have successfully tapped into this market.

The yield opened at 7.42% on Thursday, and gradually eased during the day to close at 7.39%, CCIL data showed. The government will sell ₹33,000 crore of bonds in its weekly auction on Friday, of which ₹3,000 crore would be sold as a 30-year green bond.

Rupee ends flat at 95.26

The rupee was nearly unchanged on Thursday, closing at 95.26, versus its previous close of 95.22. The rupee rebounded after hitting its weakest level in 2 weeks as likely intervention by the RBI and softer oil prices offset dollar demand, traders said. Pressure on rupee eased as the dollar index eased to 102.2, from 102.6 amid dovish commentary by the US Fed.