|
|
|
Benchmark bond yield rises just over 14 bps after repo rate hike
|
|
|
|
Top Stories |
|
|
|
|
IANS | 05 Aug, 2022
The yield on 10-year benchmark bond rose sharply by more than 14 basis
points on Friday after the Reserve Bank of India (RBI) increased repo
rate by 50 basis points.
The 10-year benchmark
6.54%-2032 bond yield ended at 7.3005 per cent, as against 7.1566 per
cent close on the previous trading session. The bond market was extended
by one-and-a-half hour to 5 p.m. due to late announcement of the weekly
bond auction results.
"The bond market sold off after the policy
announcement with yields moving higher by 15-20 basis points across the
curve. Given that the bond yields have come down significantly over the
last month, there is a possibility of a further rise in bond yields in
the short term," said Pankaj Pathak, Fund Manager - Fixed Income,
Quantum AMC.
The RBI in its bi-monthly monetary policy increased
repo rate by 50 basis points to 5.40 per cent on Friday to contain
inflation. Consequently, the standing deposit facility rate adjusted to
5.25 per cent and marginal standing facility and bank rate adjusted to
5.65 per cent.
The central bank has retained GDP and inflation
forecasts at 7.2 per cent and 6.7 per cent, respectively, for the
current financial year.
"With inflation expected to remain above
the upper threshold in Q2 and Q3, the MPC stressed that sustained high
inflation could destabilise inflation expectations and harm growth in
the medium term. The MPC, therefore, judged that further calibrated
withdrawal of monetary accommodation is warranted to keep inflation
expectations anchored and contain the second-round effects," RBI
Governor Shaktikanta Das said.
In the weekly bond auction, the central bank raised Rs 33,000 crore through four bonds.
The
RBI raised Rs 4,000 crore through 6.69%-2024 gilt at cut-off price of
Rs 100.04 or 6.6616 per cent cut-off yield, Rs 7,000 crore via
7.10%-2029 at cut-off price of Rs 99.35 or 7.2213 per cent yield, Rs
13,000 crore via 6.54%-2032 at cut-off price of Rs 94.66 or 7.3328 per
cent yield, and Rs 9,000 crore via 6.95%-2061 at cut-off price of Rs
90.86 or 7.6898 per cent yield.
Market participants expect that
by the end of this month, the central bank may announce a new benchmark
bond as current benchmark bond has crossed Rs 1.4 lakh crore
outstanding.
"Bond yields may not move up significantly from
current levels. We expect the 10-year G-sec yield to find support around
7.5 per cent," Pathak added.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|