India 10Y Yield Hits Near 2-Year High
The yield on India’s 10-year G-Sec rose to around 7.17%, reaching its highest level in nearly two years, as elevated US Treasury yields and expectations of further rate hikes kept pressure on Indian yields. The US 10-year yield hovered near 5.2%, its highest level in nearly two decades, as stronger economic data and hawkish Fed signals lifted bets on further rate increases. Expectations of an RBI hike next week have also strengthened following August inflation of 4.82% and the Fed’s recent move. However, a reduction in planned five-year and 10-year bond issuance for October-March could offer some relief after the recent selloff. The government plans to borrow INR 7.86 trillion during the period, with the share of 5-year and 10-year bonds cut to 12.1% and 26.3%, respectively, from 15.4% and 29% in the first half.
17%, reaching its highest level in nearly two years, as elevated US Treasury yields and expectations of further rate hikes kept pressure on Indian yields. 2%, its highest level in nearly two decades, as stronger economic data and hawkish Fed signals lifted bets on further rate increases. 82% and the Fed’s recent move. However, a reduction in planned five-year and 10-year bond issuance for October-March could offer some relief after the recent selloff.
4% and 29% in the first half.