India bond yields edge lower tracking US peers
By Bhakti Tambe
MUMBAI, July 16 (Reuters) -Indian government bond yields ended lower on Tuesday, tracking a fall in U.S. yields on expectations that the Federal Reserve was likely to cut interest rates at its September meeting.
The benchmark 10-year yield IN071034G=CC ended at 6.9632%, having closed at 6.9767% in the previous session. The bond markets are closed on Wednesday for a local holiday.
The U.S. yields were lower on Tuesday and have been on a decline in the past two weeks on increasing expectations that the Fed will cut rates as soon as September, as the jobs market softens and inflation eases back closer to the U.S. central bank's 2% annual target.
Fed Chair Jerome Powell said on Monday that the three U.S. inflation readings over the second quarter of this year do "add somewhat to confidence" that the pace of price increases is returning to the Fed's target sustainably.
Traders are also pricing in a second and possibly a third rate cut by December. FEDWATCH
Back home, the Reserve Bank of India is likely to be on a long pause and is likely to start cutting rates only after the developed market central banks start their rate-cutting cycle, Puneet Pal, fixed income head at PGIM India Mutual Fund said.
"We expect the 10-year benchmark yield to keep drifting lower gradually and converge with the policy repo rate before the start of the rate-cutting cycle," Pal added.
Bond market participants also await the final budget, which the government will announce on July 23, with major focus on the fiscal deficit target and gross borrowing figures.
India had announced gross borrowing of 14.13 trillion rupees ($169.12 billion) in the interim budget, with a fiscal deficit target of 5.1% of gross domestic product.
($1 = 83.5510 Indian rupees)
Reporting by Bhakti Tambe; Editing by Janane Venkatraman
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
