Investors should be ready for volatility in long-duration securities, say experts.
Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India, said he expected repo hikes in June and August policy review meetings too
Fall in global crude oil prices also leads to a sharp decline in bond yields
European Central Bank officials said on Thursday that the central bank might start hiking euro zone rates as early as July
US Treasury yields dipped after hitting three-year highs on Wednesday as buyers emerged. Benchmark 10-year yields were last at 2.8455%, after reaching 2.981% overnight, the highest since Dec. 2018
Spot gold was down 0.3% at $1,944.06 per ounce, as of 0430 GMT, after hitting its lowest since April 11. U.S. gold futures fell 0.7% to $1,944.80
Wall Street opened higher on Tuesday and bond yields continued to swing upward as Russia's invasion of Ukraine weighed on global growth expectations
India imports more than two-thirds of its oil requirements and rising prices tend to push up imported inflation and widen the country's trade and current account deficits
The decline in spreads has been accompanied by a sell-off in equities by foreign portfolio investors (FPIs)
In its April 8 monetary policy review, the Reserve Bank of India (RBI) signalled that from being supportive towards growth, its focus would now shift towards reining in inflation
The RBI statement showed for a seven-year paper, the notified amount was Rs 7,000 crore and bids received were worth Rs 22,632 crore
On Tuesday, the yield on the 10-year benchmark government bond advanced 5 basis points (bps) to close the day at 7.19 % - close to a three-year high
Rising bond yields, fears of aggressive rate hikes by global central banks, and Covid-19 scare in China are among the key pain-points for investors
Technology shares, which have been underpinned by record low interest rates, fell 2% in Europe and 2.6% on Wall Street.
Stocks fell in afternoon trading on Wall Street Monday as the market extends a losing streak from last week. The S&P 500 fell 1.2 per cent as of 12:01 pm Eastern. The Dow Jones Industrial Average fell 189 points, or 0.6 per cent, to 34,530 and the Nasdaq fell 1.8 per cent. Both the benchmark S&P 500 and the Nasdaq are coming off their first weekly loss in four weeks. Technology stocks fell broadly and were the biggest weights on the market. Microsoft fell 3.7 per cent and Apple shed 2 per cent. Energy stocks were among some of the biggest losers as they followed oil prices lower. US crude oil prices fell 3.7 per cent and Exxon Mobil slumped 3.1 per cent. Oil prices remain volatile amid Russia's invasion of Ukraine, which has put more pressure on global energy supplies. Global oil prices are up just over 25 per cent for the year, though they have been easing somewhat throughout April. Industrial companies and banks held up better than the rest of the market. Boeing rose 1.1 per
Rising bond yields are considered to be negative for the equity markets, at least in the near-term.
Bond yields slipped from multi-year highs on Thursday, offering some respite to equities after US Fed minutes released previous day reinforced the rate-hike momentum already priced into markets
By Daniel Leussink
The dollar index rose 0.3%, with the euro down 0.46% to $1.092
The current yield inversion has more to do with the temporary demand-supply mismatch in the bond market and doesn't necessarily signal a recession in the US