US mid-term election outcome effect: G-Secs rally, Rupee gains
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The G-Secs market rallied on Wednesday after Democrats won control of the US Congress in the mid-term elections.
- ✓The 10-year G-Sec yield fell 12 basis points to 7.19 per cent.
- ✓The rupee also gained ground against the dollar.
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The Government Securities (G-Secs) market rallied on Wednesday, tracking falling US Treasury yields and dip in crude oil prices amid the Democrats winning control of the US Congress in the mid-term elections. The rupee too gained ground as the US dollar weakened.
Yield of the widely tracked benchmark 10-year G-Sec (6.94 per cent GS2036) dipped 12 basis points, the biggest single day decline in about six months, to close at 7.19 per cent against the previous close of 7.31 per cent. The price of this security jumped by about 83 paise.
Yield and prices of a bond are inversely co-related and move in opposite directions.
Referring to the outcome of the US mid-term elections, Nuvama, in report, said: “For Indian government bonds, lower US yields and a weaker dollar could provide external support and improve FPI sentiment in the near term, although domestic factors and crude oil prices will remain key drivers. For now, 10-year IGB (India Government Bond) has eased.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
Business Line
Read the full, original unfiltered story directly on the publisher's portal.