Indian government bonds dip as Brent slips, Fed decision awaited
Indian government bonds saw a bit of good news today, mostly because global oil prices finally calmed down after last week's spike.
The yield on the key 2036 bond dipped slightly as Brent crude slipped to $114.50 per barrel.
Basically, lower oil prices are giving the bond market some breathing room.
Traders watch swaps, prepare state-loan auction
Everyone's now waiting to see what the US Federal Reserve decides about interest rates tomorrow: it could shift things for India too.
Even though inflation and a weaker rupee have been putting pressure on India's central bank to hike rates, the rupee held steady at 95.22 per US dollar today, which helps ease worries for now.
Meanwhile, traders are prepping for a big state-loan auction and watching swap rates closely, since both inflation and global trends are keeping everyone cautious in the markets.