Oil drop and US Treasuries ease Indian government bond yields
Business
Indian government bonds are finally catching a break this Monday, all thanks to a drop in oil prices and some positive moves in US Treasuries.
The yield on the 6.94% 2036 bond slipped slightly to 7.4640% after Brent crude fell 2.14% to $114 a barrel in Asia, offering some relief for markets that have been tense about global supply issues.
Foreign outflows hit Indian government bonds
India, as one of the world's top oil importers, feels every bump in crude prices.
Lately, foreign investors have pulled out ₹153 billion ($1.6 billion) from Indian government debt since August, the longest stretch of rising yields since 1998.
Now, everyone's watching inflation and expecting more rate hikes both at home and abroad, which could keep things interesting for the bond market in the months ahead.