India's five-year government bond yield returns to 6.50%, narrowing the spread with the ten-year yield to a two-week low
- India's 5-year 6.36% 2031 government bond yield rebounded to 6.50% on Monday, as traders opted to take profits after previous gains. This maturity’s yield showed strong bottom support around the 6.45% level.
- Meanwhile, the 10-year benchmark 6.94% 2036 government bond yield remained steady at 6.85%. Market participants are awaiting new drivers; divergent performance at both ends narrowed the spread between the two securities to 35 basis points, the tightest level in two weeks.
- According to a trader at a foreign bank, foreign investment in the 2031 bond has slowed over the past few sessions, with profit-taking pressure being released. Previously, this spread had widened to over 40 basis points after foreign investors focused on the 5-year bond following the Reserve Bank of India's recent announcement to attract US dollar inflows earlier this month.
- Going forward, attention should be paid to changes in the pace of foreign capital inflows and the Reserve Bank of India's monetary policy stance, as they affect the transmission of rates at the short end. Whether the spread narrows further will depend on whether the 10-year yield finds a new trading direction.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Elon Musk changes his stance! Tesla (TSLA.US) delays Cybertruck production halt to late summer 2027, just two days after suggesting “refund deposits”
Elon Musk stated that Cybertruck production will be extended until late summer 2027 to clear the order backlog, and Tesla's stock price rose by about 4%.
Japanese dovish policymaker urges "slow down": Price increases are not driven by demand, rate hikes may drag down the economy and inflation
Toichiro Asada, a member of the Bank of Japan's Policy Board, stated that the central bank needs to remain cautious and closely monitor the impact of rate hikes on the economy, as rising interest rates pose the risk of suppressing the inflation trend.
Don't Be Misled by "Instant Purchase, Instant Access": Pro Series Zero Wait Has Been the Norm for Years, UBS Maintains Apple (AAPL.US) Target Price at $340
The waiting time for iPhone 18 Pro is approaching zero, and Duo deliveries are scheduled until the end of January. UBS maintains its forecast for iPhone revenue in the December quarter at $95.1 billions, representing a year-on-year increase of 11.5%.
Crypto prices
More
