India's 10-year bond heads for first weekly gain in 11 weeks, set to end record losing run
TLT•A Treasury rally helped Indian government bonds extend gains, putting the benchmark 10-year bond on course for its first weekly rise in 11 weeks and ending its longest losing streak on record. Its yield fell more than 9 basis points this week to 7.3837%.
1. Bond yields ease
The benchmark 6.94% 2036 bond yield traded at 7.3837% on Friday, slightly below Thursday’s level. It has fallen more than 9 basis points so far this week, after rising over 70 basis points in the previous 10 straight weeks, a streak not seen since at least 1998.
2. Investor demand supports gains
Investors bought Indian bonds after the 10-year yield twice approached, but did not breach, 7.50%. Mutual funds were the largest value buyers, purchasing about 40 billion rupees of bonds through Thursday. A slightly dovish Federal Reserve policy also supported the market. Demand at New Delhi’s 330 billion-rupee debt sale will be key to sustaining the rally, a private bank trader said.
