Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www-business-standard-com-nalsar.knimbus.com or the Business Standard newspaper
Last Friday, the 10-year bond yield fell 3 basis points (bps) to end the day at 6.99 per cent – the first instance of the yield closing below 7 per cent since April 7, 2022. In the first week of May as well, the 10-year bond yield dropped below 7 per cent – to 6.98 per cent, before profit-booking kicked in, lifting it above that mark. On the same day, the cut-off yield of the 10-year bond auction was fixed at 7.038 per cent – its one-year low. One basis point is a hundredth of a percentage point.
There were many reasons behind the drop in the bond yield, including a fall in the US yield and softer crude prices.
Let’s take a close look at some of the key parameters that have been influencing the bond market since the onset of the Covid pandemic.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? Log in NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.