MUMBAI, Apr 5 (Reuters): Indian government bond yields rose on Friday and for the week, with the benchmark yield posting its biggest weekly jump in four months, tracking a spike in US Treasury yields amid concerns over the Federal Reserve's interest rate cuts.
The benchmark 10-year yield ended at 7.1232 per cent, following its previous close of 7.0934 per cent. It rose seven basis points this week after easing four bps last week.
Yields rose during the session after the Reserve Bank of India (RBI) maintained its main lending rate and stance as widely expected.
"The monetary policy was quite uneventful, as expected," said Sandeep Yadav, fixed income head at DSP Mutual Fund.
"In such a scenario, Indian bond markets will be tracking global markets for a while. Thus the US Treasury yields and oil should remain near-term drivers," Yadav added.
Robust growth provides space for monetary policy to remain focused on bringing inflation down to the central bank's 4 per cent target, Governor Shaktikanta Das said in his statement.
The RBI expects the economy to expand by 7 per cent in fiscal year 2025, unchanged from its earlier forecast, while it sees retail inflation at 4.5 per cent, with volatile food prices a continuing risk.
Meanwhile, US yields stayed elevated around the key 4.35 per cent mark, with market awaiting the March nonfarm payrolls report, a major factor in gauging the timing of the Fed's first easing in 2024 and the number of rate cuts.
India 10-yr bond yield posts biggest weekly jump in 4 months
FE Team | Published: April 05, 2024 22:33:18
India 10-yr bond yield posts biggest weekly jump in 4 months
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