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

January 20, 2017
Advance in inflation across the Eurozone
Euro holds gains against the US Dollar ahead of the ECB rate decision, as majority of economists expect no major updates in the policy, while investors will be taking stock of Draghi rhetoric’s to foresee the timeframe of the next big move by the policymakers...
January 20, 2017
US oil inventory draw gave a temporally support for oil prices
Oil prices remained in red figures after Wednesday's bearish acceleration. Brent a little changed on the day and remained prone to more weakness on Thursday. The benchmark stayed neutral around 54.50 dollars per barrel flirting with the level during the European session...
January 20, 2017
Pound gives up gains
The British pound has pulled back sharply today after making its biggest 1day gain in nearly 20 years’ yesterday, as fears once again crept in about where Brexit will lead to...

FXCM Rating
Z.com Trade Rating
Larson&Holz IT Ltd Rating
Fort Financial Services Rating
XM Rating
Trade360 Rating

Banc De Binary Rating
Binary.com Rating
OptionRally Rating
Binary Brokerz Rating
TropicalTrade Rating
EZTrader Rating