Indian bonds rise modestly

May 27, 2016

The Indian government bonds traded modestly firmer on Friday as rupee continued to appreciate against the USD. Moreover, investors were also cautious ahead of bonds auction later in the session. The yield on the benchmark 10-year bonds, which moves inversely to its price fell 0.003 percent to 7.469 by 0700 GMT.

India’s rupee headed for its biggest weekly advance since early April as local stocks jumped amid an emerging-markets rebound. The USD/INR is currently trading around 67.05. Moreover, the Indian bonds have been closely following developments in oil markets because of their impact on inflation expectations, as India imports 80 pct of its crude oil requirements. Today, crude oil prices fell below $50 mark after investors booked profit, as they considered whether higher prices could unlock more output in an already oversupplied market. Yesterday, crude oil prices crossed $50 mark for first time in seven months after the U.S. government reported a larger-than-expected drop in crude inventories. According to the US DOE, crude inventories decreased 4.2 million barrels, as compared to a build of +1.3 million barrels seen prior for the week ending 20 May. This came alongside an increase seen in gasoline inventories of +2.0 million barrels, from a draw of -2.5 million barrels seen prior and a decrease in distillate inventories of -1.3 million barrels, against a draw of -3.2 million barrels. The International benchmark Brent futures fell 0.85 pct to $49.17 and West Texas Intermediate (WTI) dipped 0.77 pct to $49.10 by 0530 GMT.

Meanwhile, The Reserve Bank of India (RBI) will auction 150 billion rupees of four government securities maturing in 2024, 2030, 2034 and 2055 today. The underwriting fee for the auction of 2055 paper was set at higher-than-expected levels yesterday, hinting at the possibility of a weak demand. The Sensex rose 0.77 pct or 201.86 points to 26,568.54 and Nifty-50 futures jumped 0.72 pct or 58 points to 8,140 by 0700 GMT.

Publication source
Vinson Financials Ltd information  Vinson Financials Ltd reviews

September 30, 2016
The OPEC greases the wheels for oil
The global equities rally led by the gains in the energy sector after the OPEC members cut a deal in Algiers, despite the market scepticism and repeated statements that the Oil officials in Iran and Saudi Arabia are not able to find a middle ground in the current conditions...
September 30, 2016
Opec deal no certainty
In a huge surprise to the market, members of the Opec cartel agreed to cut production by as much as 700,000 barrels a day with some predicting that this may be the start of a new upward trend for oil...
September 30, 2016
Brent futures consolidated their gains
Brent rose in the European session after a surprised OPEC decision to cut oil output. Moreover, a draw in U.S. crude stocks gave an additional support for oil prices...

OANDA Rating
FBS Rating
FXCM Rating
Tickmill Rating
FIBO Group Rating
HotForex Rating

TropicalTrade Rating
OptionsXO Rating
OptionFair Rating
IQ Option Rating
Banc De Binary Rating
24option Rating