Indian government bond yields hold amid inflation and oil pressures
Indian government bonds barely moved on Thursday, with traders waiting for fresh cues.
Thanks to India's retail inflation rising to 4.45% in July from 4.38% in June and US inflation edging up 0.1% in July after declining in June, with annual inflation slowing to 3.4% from 3.5%, plus oil prices holding near $88.9 a barrel (even as U.S.-Iran talks stall), central banks are expected to keep interest rates unchanged for now.
The main bond yield yielded 6.7748%, barely changed from Wednesday.
India inflation ticks up to 4.45%
Lower oil prices help keep inflation in check, which is good news for India's economy.
July saw India's retail inflation tick up slightly to 4.45%, while US inflation barely budged, just a 0.1% rise last month, bringing its annual rate down to 3.4%.
With global uncertainty still hanging around, the stable bond market signals less worry about big rate hikes anytime soon.