BS; Ten-year bonds gain as 1-week high yields lure buyers
Ten-year bond rose as yields at the highest level in more than a week attracted investors.
Yields fell after former Federal Reserve Governor Donald Kohn told the New York Times yesterday that policy makers should take more steps to support the economy if the recovery continues to slow. The Reserve Bank of India (RBI) has raised interest rates four times this year to cool inflation and will review the policy again on September 16.The yield on the 7.8 per cent note due May 2020 fell four basis points to 7.96 per cent as of the 5:00 pm close in Mumbai, according to the central bank’s trading system. The price rose 0.28 per cent, or 28 paise per Rs 100 rupees face amount, to Rs 98.99.
Rupee weakens, snapping four-day gain
The rupee weakened, snapping a four-day advance, on speculation importers will step up dollar purchases as a gauge of the US currency’s strength climbed.
The rupee declined 0.6 per cent at 46.84 per dollar as of the 5:00 pm close in Mumbai. That boosted the currency’s losses this quarter 0.6 per cent, the worst performance among the 10 most-traded Asian currencies outside of Japan.Offshore forwards indicated the currency will trade at 47.47 to the dollar in three months, compared with expectations of 47.15 yesterday.
