traders expect the yield on the 10-year benchmark 7.26%, 2033 paper to stay below 7.05% before the US CPI data, dealers said. The market is likely to track the Treasury bill auction result closely, given the tight liquidity conditions, as it may take the yields on the shorter-term bonds higher, dealers said. The Reserve Bank of India will auction 120 bln rupees of 91-day Treasury bills, 120 bln rupees of 182-day Treasury bills, and 80 bln rupees of the 364-day Treasury bill today. Trader
Prices of government bonds are seen opening steady as traders may refrain from placing aggressive bets due to caution ahead of the US CPI inflation data for April, due later today, dealers said.Today, the yield on the 10-year benchmark 7.26%, 2033 bond is seen at 7.01-7.07% as against 7.04% on Tuesday.Inflation in the US is expected to have increased 0.4% on month in April and 5% on year, according to a poll of economists by Dow Jones. Meanwhile, core inflation,
Global central banks nearing ‘prolonged pause phase’, but not as yet May 9 FE: After the synchronized hikes of last year, the past few months saw diverging monetary policies. While China, Vietnam cut their policy rate, several Asian central banks paused while the US, EU, UK continued to hike. With most global central banks already reaching its peak and close to its highest interest rate, economists believe most countries are now nearing a prolonged pause phase, but there could be 1-2 rate hike
Domestic benchmark indices are expected to open subdued today after indices in the US ended mixed on Monday as investors refrained from placing bets ahead of key inflation data, due Wednesday. The data will help gauge the US Federal Reserve's next decision on interest rates. Asian indices, too, were mixed in early trade in anticipation of trade data from China, due today, besides the US inflation data. Japan's household spending data for March is also scheduled to be released today.