India bonds end tad higher on softer oil
TLT•Indian government bonds ended marginally higher, with the 10-year yield down 1 basis point to 7.3012%, as softer oil supported debt markets. Profit booking and caution ahead of US midterm elections limited gains.
1. Bonds edge higher
Indian government bonds ended marginally higher on Tuesday, and the benchmark 6.94% 2036 bond yield fell 1 basis point to 7.3012%, its lowest since October 9. The yield briefly reached 7.2780% before profit booking trimmed gains.
2. Oil and rate outlook
Brent crude fell more than 7% on Monday to $104.80 a barrel, then rebounded to around $106 on Tuesday. Traders were recalibrating expectations for the Reserve Bank of India's rate path as softer oil could temper domestic inflation risks; India's one-, two- and five-year overnight indexed swap rates also declined.
