Key Points
MUMBAI, Sept 29 (Reuters) - Indian government bond yields rose on Friday, with the benchmark yield posting its first quarterly rise in more than a year on the back of a relentless spike in oil prices and U.S. yields...
However, investors anticipate a decline in yield in the upcoming weeks due to improving demand and a surge in overseas inflows following the inclusion of Indian government bonds in the JPMorgan emerging markets index...
The 10-year benchmark 7.18% 2033 bond yield ended at 7.2162% on Friday, leading to 10 basis points increase for the quarter..
"Rising oil prices and U.S. yields led to a rise in local yields in the quarter, but going ahead I am turning mildly bullish on Indian bonds, and the central bank is also expected to be neutral to dovish at its policy decision next week," said Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank.cs..
In fact, Jean-Charles Sambor, head of fixed income for emerging markets at BNP Paribas Asset Management turned "more positive" on Indian bonds after index inclusion, citing likely inflows of about $20 billion in the next two years, with benchmark yield below 7% by December end...
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