Govt bonds, rupee strengthen as crude prices plunge on growth concerns
Government bond yields plummeted on Wednesday as speculation of India’s sovereign debt being included on global bond indexes and a recent slump in crude oil prices bolstered the market’s appetite, dealers said.
Yield on the 10-year bond — ‘6.54 per cent 2032’ — hurtled 10 basis points to close at 7.19 per cent on Wednesday. Bond prices and yields move inversely — one basis point fall in yield on the 10-year paper corresponds to a rise in price of roughly seven paise.
The rupee settled at 79.45 per US dollar as against 79.66 in the previous close.
The bond and currency markets re-opened after an extended weekend as Monday and Tuesday were trading holidays on account of Independence Day and Parsi New Year, respectively.
