Indian bond rally seen extending on weaker oil, Treasury yields
TLT•Indian government bonds were expected to extend recent gains, supported by falling oil prices and softer U.S. Treasury yields. The 10-year yield had fallen about 12 basis points in three sessions, and the benchmark yield was seen in a 7.28%-7.33% range.
1. Bond yields ease
Indian government bonds were expected to extend their recent gains in early trade on Tuesday. A private bank trader said the benchmark 6.94% 2036 bond yield was seen in a 7.28%-7.33% range, after ending Monday at 7.3154%; the 10-year yield had fallen about 12 basis points in three sessions.
2. Oil and Treasury support
Crude oil prices fell more than 7% on Monday, with Brent ending below $105 a barrel, while longer-dated U.S. Treasury yields also eased. The trader said bond buying had become the prevailing narrative and that there was still room for fresh positions. Investors remained cautious ahead of the U.S. midterm elections.
