The proceeds on the 10-year-old benchmark ended at 6.4885%, after a closure of 6,5139% on Thursday. The proceeds rose marginal in the week, after climbing 2 basic points last week.
The proceeds go reversed to prices.
The Federal Reserve lowered the interest rates with 25 BPS and in 2025 indicated 50 BPS to more cuts. Chairman Jerome Powell, however, said that the FED will be in a “meeting-per meeting” with regard to the rate reduction viewer and the relocation framed as a reduction in risk management.
This indicates that the interest rate reduction cycle may not be that deep, said Gaura Sen Gupta, chief economist at IDFC First Bank.
Locally, the market remains concerned about the constant range of the center and the states, which has increased the proceeds and the skewed dynamics of the demand offer. Traders are now waiting for the loan calendar of the center for the second half of the tax year, which will probably be published before the end of September. In a round of consultation with several market participants earlier this month, the Central Bank received suggestions to reduce the share of ultra-long bonds in the total supply and also reduce weekly auction sizes.
The issue of the government bonds for the quarter of October-December, which would be released around the same time, also gets meaning, said traders.
Earlier this week, the RBI asked states to spread their loans on agency times instead of concentrating on long -term bonds and to communicate more accurately.
Rates
India’s overnight indexwaps had been mixed, with the shorter end little changed, while the longer end witnessed an increase.
The OIS percentage of one year was 5.45% and the OIS percentage of two years was 5.42%.
The liquid OIS speed of five years ended at 5.71%.
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