Indian Bond Yields Expected to Ease at Week's Start
Easing oil prices: The recent decrease in oil prices is contributing to a more relaxed market environment.
US yields have also retreated from their recent highs, further supporting the potential for lower Indian bond yields.
The upcoming monetary policy decision by the Federal Reserve remains a key point of interest for investors.
Traders anticipate the benchmark 10-year Indian yield to fluctuate within a range of 7.16% to 7.21%. This projection follows the previous close of 7.1870%.
Strong demand at Friday's auction: The robust demand witnessed at the recent government bond auction has instilled confidence in the market.
The release of US inflation data, which came in largely as expected, has contributed to a more stable market outlook.
Investors are now anticipating a more cautious approach from the Federal Reserve regarding potential rate cuts in 2024.
The ongoing peace talks between Israel and Hamas have alleviated concerns about a wider conflict in the region, leading to a decline in oil prices.
The Indian bond market is expected to experience a relatively calm start to the week, with yields likely to ease marginally. The focus will remain on the Federal Reserve's monetary policy decision and its potential impact on global markets.