Connect with us

Popular World News

Best Asia Bond Rally Bolstered as India Minister Seeks Rate Cuts By Bloomberg

© Reuters.  Best Asia Bond Rally Bolstered as India Minister Seeks Rate Cuts

ECONOMIC NEWS

Best Asia Bond Rally Bolstered as India Minister Seeks Rate Cuts By Bloomberg

[ad_1]

© Reuters. Best Asia Bond Rally Bolstered as India Minister Seeks Rate Cuts

(Bloomberg) — Indian bonds rallied after the Finance Minister said the economy could do with significant interest-rate cuts and ruled out any rethink over a proposed $10 billion overseas bond sale.

Benchmark 10-year yields dropped nine basis points to 6.43%, after climbing 16 basis points last week. Traders riding Asia’s best bond rally over the past month were caught wrong-footed last week after Reserve Bank of India Governor Shaktikanta Das said future cuts will be data dependent and a report showed Prime Minister Narendra Modi’s office was opposed to the issue of foreign-currency-denominated debt overseas.

Bonds are gaining Monday “on the back of comments from the finance minister that significant rate cuts would be good for the economy,” said Nagaraj Kulkarni, a senior rates strategist at Standard Chartered (LON:) Plc in Singapore. “The bond market had partially unwound its medium-term rate cut expectations a couple of weeks back. We are seeing the expectations coming back now.”

Significant rate cuts over and above the 75 basis points the Reserve Bank of India has already delivered would do a lot of good for the country, Finance Minister Nirmala Sitharaman told The Economic Times. She also said her office wasn’t reviewing the government’s proposal to issue sovereign debt overseas.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



[ad_2]

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in ECONOMIC NEWS

To Top
error: Content is protected !!
Top