New Delhi, 17 September (IANS). The benchmark Indian bond yield is expected to fall slightly in the next three months due to favorable inflation figures and stable prices of oil. This information was given in a report on Wednesday.
Research firm Crisil Intelligence reports that the 10 -year government bond yield, which was 6.59 percent on August 31, is expected to be 6.42 -6.52 percent by the end of September and 6.38 -6.48 percent by the end of November.
The State Development Loan Yield is expected to come down from 7.23 percent to 7.15 -7.25 percent by November, while the 10-age corporate bond yield may come down from 7.19 percent to 7.08-7.18 percent.
Crisil reported that soft prices of oil are compensating for geopolitical risks and slow pace in global development.
The major factors affecting the yield are the upcoming decision of the US Federal Open Market Committee, an average liquidity of Rs 2.84 lakh crore in the domestic market in August, the ongoing US-India trade talks and unstable foreign capital flows.
Between July 1 and September 8, foreign institutional investors sold Indian shares worth a total of Rs 1.02 lakh crore, out of which sales of Rs 7,800 crore in the first six sessions of September.
The report said that the Repo Rate cut in the October meeting by the Reserve Bank of India Monetary Policy Committee is low, as the central bank has announced a break and indicated that any further intervention will depend on data.
According to the report, the real fiscal effects will be less than expected due to recent GST rationalizes.
India’s first quarter GDP growth rate has reached 7.8 percent and the government’s decision to simplify the GST structure is expected to bring about Rs 50,000 crore in the economy, which will boost domestic consumption.
SBI Capital Markets recently stated that fiscal stress in the US and Britain has complicated global trade stress and the bond yield curve is growing further due to increasing debt burden.
-IANS
SKT/
