The yield on 10-year US treasury bills breached the psychologically crucial 5% mark on Monday – the highest since July 2007 – bringing back memories of the 2007-08 financial crises. The spike came on the back of fears that the US Federal Reserve will keep rates higher for a longer period.
Last week, US Federal Reserve Chairman Jerome Powell said inflation in the US continues to be too high and bringing it down to the Fed’s 2% target level will likely require a slower-growing economy and job market. His hawkish comments came against market expectations that the rate hikes had reached an end.
I-T dept may launch drive to quicken refunds
Economists believe that there will an adverse impact of US yields will be felt in the Indian markets as well. “There would be an upward pressure on Indian bond yields since the unfavourable interest rate differential would mean reduced inflows into non-US bond markets,” said Abheek Barua, chief economist, HDFC Bank.
Over 13 lakh UP government employees may lose their salaries in August. Here’s why Moto G45 affordable 5G phone with Snapdragon 6s Gen 3 launched in India for Rs 10,999 – full details ‘I’ll deliver my best next time’: Mirabai Chanu after finishing fourth in women’s 49kg weightlifting at Paris Olympics Paris Olympics 2024: Neeraj Chopra qualifies for men’s javelin throw finals with season’s best 89.34m in first attempt
The yield on India’s 10-year government securities (G-sec) ended at 7.38% today, up 2 basis points (bps) than Friday. India’s 10-year bond yield is now just 10 bps lower than 52-week high level of 7.48%, last touched in November 2022. The rupee fell by 7 paise to close at Rs 83.19.
Barua said that yield on Indian G-sec may breach 7.4% yield going ahead, adding that the current week is data heavy and US bonds seem a little oversold. According to him, the US Fed will cut policy rate from Q3-2025 and the Reserve Bank of India’s (RBI) rate cut will be in sync with US Fed.
Madan Sabnavis, chief economist at Bank of Baroda, shared similar views. The main reason for the spike in US bond yields, Sabnavis said, was because the US Fed has not yet signaled about the end of the current policy rate hike cycle and due to the fact that the US economy is performing better than expected, with higher jobs being recorded month-on-month and strong economic data.
While Indian bonds do react to such movements and there has been a difference of 250 bps-300 bps between Indian and US bonds on a historical basis, Indian bonds are driven more by how the RBI acts or comments.
“Hence there will not be any direct relationship between US and Indian bonds. This said, we should realise that higher US yields will come in the way of capital flows to EMs (emerging markets) and hence Indian markets,” Sabnavis added.
Ajay Manglunia, MD & head of Investment Grade Group at JM Financial, says rising US yields does bear negative sentiment in the Indian market, and the bond yields ended marginally higher today, tracking the US market doing Asia hours.
Also Read
FII, DII data: FPIs purchased shares worth Rs 456Cr, DIIs added shares worth Rs 8Cr on October 20, Friday
Minutes released by RBI last week also showed that monetary policy committee (MPC) now wants to achieve the 4% inflation target without any leeway on the plus or minus 2% tolerance band. “With the current inflation projections, it seems that it will take almost a year to achieve the same, which will indirectly keep the bond yields elevated for longer,” he said.
He added that the next US Fed monetary policy outcome is scheduled for November 1 and if the economic data continues to be resilient as seen in last few weeks, the regulator might be forced to hike again. “That’s what is keeping people guessing and cautious from taking more exposure. Market needs clarity,” he said.
Related Posts
Marvel Rivals has surpassed 40 million players worldwide after topping 10 million users within 72 hours of launch.
NetEase shared those milestones in its fiscal report for the year ended December 2024, and revealed the free-to-play hero shooter delivered another "surge" following its Season 1 update in January 2025 to claim the top spot on Steam's global top-sellers and most-played charts.
Marvel Rivals launched on December 6, 2024, and has seemingly delivered the goods for NetEase. Despite those achievements, the Chinese company laid off a number of Marvel Rivals developers based in the United States earlier this week.
In a statement sent to Game Developer, the company said those cuts were made to "optimize development efficiency" and pledged to continue investing in …
Nintendo is suing the creators of Switch emulator Yuzu for allegedly enabling piracy.
In a lawsuit spotted by Game File, Nintendo claims the emulator "unlawfully circumvents the technological measures on Nintendo Switch games and allows for the play of encrypted Nintendo Switch games on devices other than a Nintendo Switch."
It also describes emulators as software that allows users to "unlawfully play pirated video games," and claims one of Yuzu's lead developers has "publicly acknowledged" that most users pirate their software.
"With Yuzu in hand, nothing stops a user from obtaining and playing unlawful copies of virtually any game made for the Nintendo Switch, all without paying a dime to Nintendo or to any of the hundreds of other game developers and publishers making and selling games for the Nintendo Switch," reads the lawsuit, which you can fin…
Sony is starting to roll out a new beta update for the PS5, which includes new features such as personalized 3D audio profiles, adaptive controller charging, and the ability to restrict individual Remote Play access.
Those who own the Pulse Elite wireless headset or the Pulse Explore wireless earbuds will be able to run sound-quality tests to create their own audio profile. Personalized 3D audio profiles could have many benefits, such as potentially helping players better sense the positions of characters in a game. Come from Sports betting site VPbet
The beta will also now let players limit which users have access to the console’s Remote Play feature. For example, if someone comes over and signs on to your PS5 with their account, you can change who can continue to have access to your console using Remote Play when they leave.
While those features are available to all PS5 owners, the beta’s new a…
Coinciding with Nvidia’s GeForce RTX 50-series GPU reveal at CES 2025, PC hardware company MSI has announced a slew of new gaming laptops running on the laptop versions of Nvidia’s next-generation GPUs.
The flagship model is the Titan 18 HX Dragon Edition Norse Myth, which comes in multiple hardware configurations, the most powerful of which sports a GeForce RTX 5090 GPU, Intel Core Ultra 9 275HX CPU, and up to 96GB of DDR5 RAM. An RTX 5080 model will also be available. The 18-inch laptop features a 4K UHD MiniLED display with a 120Hz refresh rate and a unique case sporting a hand-drawn dragon illustration and Nordic runes.
In addition to the Dragon Edition Nose Myth laptop, there will also be standard edition Titan 18 HX models that ditch the fantasy aesthetics but feature the same powerful hardware options Come from online casino bangladesh . MSI says these models all feature a 270 Watt sy…
Scrubs can now be put on the list of classic TV shows that are set for a revival, or at least it’s beginning to sound like it. Series creator Bill Lawrence and the cast appeared an an ATX TV Festival event this weekend, during which Lawrence said he believes a revival will happen in some capacity, though it remains to be seen how it’ll all work out Come from bangladesh online casino . In any event, don’t get too excited just yet.
“We’re gonna do it because people still care about it and we enjoy spending time with each other,” Lawrence said, as reported by Deadline.
…
Fortnite Chapter 3, Season 1 is here, and that means so too is a new loot pool. More than just a remixed pile of guns and items up for grabs, the new Fortnite Chapter 3 means brand-new guns, healing items, and more are available for players on the new island of Artemis. Here’s what to expect for new weapons and items when you drop in.
Fortnite Chapter 3 – New Weapons
There are several new weapons on Artemis, including at least one designed by The Seven themselves. Here they are by name, as well as what kind of features they have. Come from malaysia online casino
- Ranger Assault Rifle: Built for medium to long-range fire, this is the new default AR in Chapter 3
- MK-7 Assault Rifle: Designed by The Seven and sporting a unique first-person red dot scope when aiming down sights
- Striker Pump Shotgun: A reimagined “pumpy” with high burst damage
- Auto Shotgun: Needs closer quarters than the pu…
The Nintendo Switch has been a game-changer since it arrived in 2017 as a hybrid console that balances the demands of home entertainment with the convenience of mobile gaming. Able to provide a thrilling experience in any of its configurations–if we’re not counting the Switch Lite that is–Nintendo’s popular console also has access to an incredible library of first-party main event titles and darling indie games. 2021 even saw the arrival of the Switch OLED, a lovely edition to the Switch family.
If you picked up a Switch this year or are simply looking for new stuff to play, we’ve rounded up the highest rated games of 2021 on Metacritic, GameSpot’s sister site. Metacritic collects tons of reviews from a wide variety of respected outlets and comes up with an average score dubbed the Metascore. These results may be a bit surprising, with Nintendo only having two entries in a top ten list that is dominated by games that range from a polished retro FPS violen…
Bethesda has shared some details on what to expect from Fallout 76 throughout the month of March. This includes plans to re-open the game’s Public Test Server–giving players a chance to test new features–and a handy refresher on the month’s upcoming community activities.
Fans have been awaiting the return of the Public Test Server (PTS) in order to get some hands-on playtesting with Fallout 76’s next update Come from Sports betting site VPbet . Bethesda plans to re-open the PTS in mid-March, at which point players will be able to try out upcoming features such as S.P.E.C.I.A.L. Loadouts, C.A.M.P. Slots, the new Daily Ops expansion, and more.
…
The stock Jio Financial Services advanced 5% to an intra-day high of Rs 371.95 after it entered into a joint venture with US-based BlackRock.
On Monday, in an exchange filing Jio Financial said that it signed an agreement with BlackRock to undertake the wealth business including incorporation of a wealth management company and subsequent incorporation of a brokerage company in India.
Earlier in 2023, BlackRock and Jio Financial Services announced an agreement to form a 50:50 joint venture to deliver tech-enabled access to affordable, innovative investment solutions for millions of investors in India.
Market rally leads to higher regulatory fees for stock exchanges Raksha Bandhan 2024 Date: Know the history, significance, and importance of the festival Neeraj Chopra: A look at his three-storey bungalow in Haryana, Rs 2 crore Range Rover Sport, and Rs 37 crore net worth PFC gains over 5%; brokerages hike target price by as much as 28%
“…
The Indian equity indices remained subdued on May 28. The Nifty 50 closed 44.30 points or 0.19% lower at 22,888.15. Similarly, the BSE Sensex settled down 220 points or 0.29% lower at 75,170.45. Realty and energy stocks were the major draggers. Adani Ports, Power Grid Corp, BPCL, Coal India, and Adani Enterprises were the major losers in the Nifty 50 on May 28.
Sectoral indices lower
The Nifty Midcap 100 dipped 467 points or 0.89% to settle at 52,294.80. Nifty Bank closed 140 points or 0.28% at 49,142.15. In the broader market, smallcap and midcap stocks closed in the red.
Markets flat! Nifty ends below 24,150, Sensex holds 79,000 mark; Mining stocks see sharp cut on August 14 The Hindenburg cloud hovers over market; Nifty ends below 24,350, and Adani group stocks see 2% cut Paris Olympics 2024: Carolina Marin tears up as knee injury ends medal hopes TRAI’s new rules: Jio, Airtel, others must pay you for service outages – Find…