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Thursday, January 27, 2022

Bond yields high; markets rise despite mixed global cues

🔴 The domestic markets and the rupee logged gains. Overcoming mixed cues from global markets, the equity benchmarks found firmer ground as investors accumulated energy, infra and IT stocks.

By: ENS Economic Bureau | Mumbai |
January 8, 2022 4:21:54 am
Stock Markets, Stock Markets news, Bond yields, US Treasury, US Federal Open Market Committee, Global markets, Business news, Indian express business news, Indian express, Indian express news, Current AffairsThe yield on the benchmark 6.10 per cent-2031 bond, which was trading at 6.4537 per cent last week, breached the 6.50 per cent mark and traded above 6.54 per cent by the mid of this week. (Bloomberg/File)

Bond yields surged more than 9 basis points in the week to January 7 following a sharp rise in US Treasury yields and hawkish minutes by the US Federal Open Market Committee.

The yield on the benchmark 6.10 per cent-2031 bond, which was trading at 6.4537 per cent last week, breached the 6.50 per cent mark and traded above 6.54 per cent by the mid of this week. It ended at 6.5423 per cent Friday.

“Currently, Indian bond yields are more influenced by external factors like the US Treasury yields and crude oil prices which are moving higher,” Pankaj Pathak, fund manager, fixed income at Quantum Asset Management, said.

The domestic markets and the rupee, however, logged gains on Friday. Overcoming mixed cues from global markets, the equity benchmarks found firmer ground as investors accumulated energy, infra and IT stocks. The Sensex ended 142.81 points, or 0.24 per cent, higher at 59,744.65. The Nifty rose 66.80 points. or 0.38 per cent, to close at 17,812.70.

Global markets were mixed ahead of key US jobs data, which will give cues on the Federal Reserve’s rate hike trajectory.

On a weekly basis, the Sensex advanced 1,490.83 points or 2.55 per cent, while the Nifty gained 458.65 points or 2.64 per cent.

Meanwhile, the rupee managed gains of 8 paise over the US dollar to close at 74.34 on Friday, helped by weaker greenback against key rivals and positive domestic equities.  with PTI

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