India bonds slip as oil prices hurt; Fed verdict in focus
On Wednesday, Indian government bonds took a hit due to renewed U.S. airstrikes in the Middle East, escalating tensions in the Gulf region. This escalation has led to a spike in oil prices and increased U.S. Treasury yields. The rising crude prices pose challenges for India's inflation, fiscal health, and current account. Investors can expect high global yields to continue, limiting the potential for rallies in Indian fixed income markets.
On Thursday, investor appetite for Indian government bonds dwindled amidst fears of increased supply and concerns over RBI's liquidity stance. The results from the treasury bill auction reflected weak demand, driving yields upward. Speculation is building that the Reserve Bank of India may take steps to curtail excess liquidity, preparing for possible policy adjustments as inflationary pressures rise. Market analysts predict interest rate hikes within the next year.
Top Trending Stocks: SBI Share Price , Axis Bank Share Price , HDFC Bank Share Price , Infosys Share Price , Wipro Share Price , NTPC Share Price
As IndiGo, Air India scramble for pilots, fresh headwinds hit hard
When a CFO resigns, is ‘personal reasons’ explanation enough?
FCNR (B) scheme garners USD65 bn, but why isn't the rupee gaining?
ET Prime special: Bigger, Better or Both? Understanding business to figure out the mystery: Power Grid Corp, Part 1
Bigger or Better: BEL’s biggest shareholder is also its biggest customer, and its rule-maker. Final part
