Israel Palestine issue: As geopolitical uncertainty following Hamas surprise attack on Israel intensifies, the flight to safety in government securities and dollars could be on the rise, said analysts
B Prasanna, Head-Global Markets Group, ICICI Bank says the 10-year bond yields are likely to go to the levels of 7.20-7.25% over the next few days.
Any element of negative newsflow is only going to drive the yields higher, said Amandeep Chopra, Group President & Head of Fixed Income, UTI MF.
Inflation will rise from here but despite that do not expect the RBI to hike rate but stay on hold for full of 2018, said Vivek Rajpal, Rates Strategist, Nomura India.
With the impending changes in the US tax laws finally driving a rise at the long-end of the curve there, and the ECB also getting to the end of its quantitative easing program, we see global interest rates gradually reflecting growth optimism, improving inflation, and hawkish Central Bank commentary, Trithankar Patnaik said.
Bhaskar Panda of HDFC Bank is of the view that as far as Indian 10-year benchmark yield is concerned, the recent downward trend may continue.
The bonds after hitting recent highs have come in for some profit booking. Expect 10-year bond yields to consolidate around current levels, says Ashutosh Raina of HDFC Bank.
For the markets that corrected globally after the Fed meet was an immediate reaction to the uncertainly of when the Fed would start hiking rates. But after this correction, markets would find a base and downside risk could be limited, thinks Robert Parker of Credit Suisse.
Ashish Parthasarthy, Head Treasurer, HDFC Bank sees rupee in range of 62-63 to the dollar.
The 10-year bond yields are approaching the 7.50 percent mark with markets anticipating another rate cut at the upcoming RBI credit policy, says Ashutosh Raina of HDFC Bank.
The rupee is consolidating around 63 levels after hitting a recent high of 63.90/dollar, with suspected intervention keeping it in a tight range, says Ashutosh Raina of HDFC Bank.
RBI's next policy meeting will be the key for rupee movement. But as of now, Andre De Silva, HSBC expects rupee to be stable or to consolidate for the time being.
Mohan Shenoi, President - Group Treasury & Global Markets, Kotak Mahindra Bank OMOs sees the 10-year bond yields in the range of 8.5-9%.
Among the steps being considered are raising dollars via state-run banks or companies or easing overseas borrowing rules.
Benchmark 10-year bond yields dropped 13 basis points to 8.03 percent from levels before the RBI announced its decision. Banking shares gained, sending the NSE bank sub-index up up 1 percent from its previous close, compared with a 0.3 percent gain in the Nifty.