Bond yields are down sharply since the beginning of FY25 even as liquidity progressively tightened.
The Budget had raised gross borrowing to Rs 6.06 trillion from Rs 5.99 trillion in fiscal ending March 2018.
US government bond yields, the benchmark for global borrowing costs, hit an all-time low on Tuesday and the yen jumped as weak Chinese data and Brexit worries triggered a fresh scramble for the safest and most liquid assets.
"We see the range of rupee for today between Rs 63.10-63.80/USD," says Pramit Brahmbhatt, Veracity.
The 10-year bund is yielding around 0.75 percent, around all-time lows, compared with the 10-year Japanese government bond (JGB) at around 0.45 percent after a decades-long downtrend.
QE to me is an act of desperation, all the interest rates are brought down to zero. However it is not producing results because people are not borrowing money, says Richard Koo, chief economist, Nomura.
According to Arjun Parthasarathy, investors can invest directly into fixed income securities or invest in short term income funds in the current market. It is advisable to stick to the best credit quality given the rising levels of bad loans and restructured loans in the system.
Rate cut by RBI will make FDs less valuable as banks flushed with liquidity will look forward to cutting the deposits rates. According to financial advisor Arjun Parthasarathy, investors should quickly lock on to FD rates now or look for other alternatives before interest rates are brought down.
Government bond yields are seen falling 10-15 basis points on Friday, the last trading day of the current fiscal year, as traders may rush to cover short positions after the Reserve Bank of India unexpectedly offered to buy debt, including the 10-year benchmark.
Hungary is seeking an international credit line of 15 to 20 billion (USD 20 to USD 26.3 billion) euros, the secretary of state heading the prime minister's office, Mihaly Varga, was quoted on Saturday as saying.
European shares drop,euro at 7-week low
The International Monetary Fund pressed Europe on Friday for stronger steps to tackle the region's debt crisis, saying countries needed access to more funding to stay afloat