Govt bond yields retreat from day’s lows on profit booking; rupee ends up
Mint · Subhana Shaikh ·
India’s 10-year bond yield rebounded from an early low to close at 7.17% as banks likely booked profits and traders waited for Friday’s big auction.
Mumbai: India’s 10-year bond yield pulled back from its day’s low on Thursday, as state-run banks likely sold into the recent rally. The rupee gained for a fifth straight session as oil got cheaper.
Yields started the day lower, touching 7.07% in the morning as US Treasury yields and crude prices slipped and investors bet that the US-Iran standoff might ease. The drop didn’t last. The 10-year couldn’t stay below 7.10%, spent most of the day between 7.10% and 7.15%, and closed at 7.17%.
Traders also stayed on the sidelines before Friday’s auction, where the government wants to raise ₹36,000 crore by selling bonds that mature in 2041 and 2076.