Mumbai: bond yields high squirt while the Rupee Weakened on Wednesday, tracking a sharp rise in global crude prices threatened to raise domestic inflation and widen the country’s current account deficit.
Oil prices rose as sanctions on Russian banks following Moscow’s invasion of Ukraine hampered trade finance for raw materials and some traders opted to avoid Russian supplies in an already tight market.
The benchmark 10-year bond yield rose 3 basis points to 6.80% from its previous close on Monday. It rose to 6.81% in early trade, the highest level since February 9. Markets remained closed on Tuesday due to local holidays.
Traders said if there is no more debt sales this fiscal, yields are likely to trade in the range of 6.75% to 6.85% depending on volatility in global crude oil and evolving geopolitical situation.
India imports more than two-thirds of its oil requirements and a rise in crude oil will increase imported inflation as well as increase the country’s current account deficit.
The partially convertible rupee was trading at 75.63/64 per dollar, weakening against the previous 75.34. It hit a low of 75.7725, the weakest since December 20.
Markets fell after data missed estimates of the country’s economic growth, with the Ukraine crisis and rising crude oil prices weighing even more.
“The time of now is overshadowed by a cloud of uncertainty LIC IPOIn a note, HDFC Bank analysts wrote, if the IPO is pushed to the next fiscal, the pair may move towards 76+ levels.
“The 10-year benchmark yield is likely to be in the range of 6.75-6.8 per cent in the near term,” he said.
Bankers advising Life Insurance Corp (LIC) on its IPO have pushed the government to postpone the launch of the stock offering in the wake of market shocks caused by Russia’s invasion of Ukraine, two sources familiar with the talks told Reuters. Told.
Oil prices rose as sanctions on Russian banks following Moscow’s invasion of Ukraine hampered trade finance for raw materials and some traders opted to avoid Russian supplies in an already tight market.
The benchmark 10-year bond yield rose 3 basis points to 6.80% from its previous close on Monday. It rose to 6.81% in early trade, the highest level since February 9. Markets remained closed on Tuesday due to local holidays.
Traders said if there is no more debt sales this fiscal, yields are likely to trade in the range of 6.75% to 6.85% depending on volatility in global crude oil and evolving geopolitical situation.
India imports more than two-thirds of its oil requirements and a rise in crude oil will increase imported inflation as well as increase the country’s current account deficit.
The partially convertible rupee was trading at 75.63/64 per dollar, weakening against the previous 75.34. It hit a low of 75.7725, the weakest since December 20.
Markets fell after data missed estimates of the country’s economic growth, with the Ukraine crisis and rising crude oil prices weighing even more.
“The time of now is overshadowed by a cloud of uncertainty LIC IPOIn a note, HDFC Bank analysts wrote, if the IPO is pushed to the next fiscal, the pair may move towards 76+ levels.
“The 10-year benchmark yield is likely to be in the range of 6.75-6.8 per cent in the near term,” he said.
Bankers advising Life Insurance Corp (LIC) on its IPO have pushed the government to postpone the launch of the stock offering in the wake of market shocks caused by Russia’s invasion of Ukraine, two sources familiar with the talks told Reuters. Told.