India bonds could rally some more as fundamentals favour bulls
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- ✓Indian government bonds could rally further this week as lower oil prices and Treasury yields boost investor sentiment.
- ✓A private-bank trader said, "Bond bulls have taken over the market for now, and we could see some more rally, but volatility would be the risk factor." Inflation data remains the focus.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Line
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Indian government bonds could rally some more at the start of a new week as benign oil prices and Treasury yields boost investor sentiment, while the focus remains on inflation data due this week in India and the US .
The benchmark 6.94% 2036 bond yield is likely to hover between 7.15% and 7.20%, a private-bank trader said. It ended at 7.1898% on Friday, leading to a weekly decline of 22 basis points.
The 10-year benchmark bond yield posted its steepest weekly drop since October 2019, after a Democratic victory in the US midterms sank crude prices and unleashed a rally in Treasuries.
The election outcome rekindled hopes for a resolution to the Iran war, sending oil prices down more than 16% for the week, their sharpest slide since April 2020.
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