India bonds may consolidate with focus on US midterm election results
TLT•Indian government bonds were likely to be largely unchanged early Wednesday, with the benchmark 2036 bond yield seen in a 7.27%-7.32% range as investors watched oil prices, US Treasury yields and US midterm election results.
1. Bond yields steady
Indian government bonds were likely to be largely unchanged in early deals on Wednesday after a recent upward run. The benchmark 6.94% 2036 bond yield ended Tuesday at 7.3012% and was seen trading between 7.27% and 7.32%; the 10-year yield had fallen about 14 basis points over four sessions.
2. Rates and market focus
A private bank trader said markets would react to oil prices and US yields. Brent crude was around $103 per barrel in Asian hours, while longer-dated US Treasury yields rose slightly. India’s one-year, two-year and five-year overnight indexed swap rates fell 3, 3.75 and 5 basis points, respectively, to 6.63%, 6.64% and 6.7275%.
