Bond yields excessive; markets rise regardless of combined world cues

Bond yields surged greater than 9 foundation factors within the week to January 7 following a pointy rise in US Treasury yields and hawkish minutes by the US Federal Open Market Committee.
The yield on the benchmark 6.10 per cent-2031 bond, which was buying and selling at 6.4537 per cent final week, breached the 6.50 per cent mark and traded above 6.54 per cent by the mid of this week. It ended at 6.5423 per cent Friday.
“Currently, Indian bond yields are more influenced by external factors like the US Treasury yields and crude oil prices which are moving higher,” Pankaj Pathak, fund supervisor, mounted revenue at Quantum Asset Management, mentioned.
The home markets and the rupee, nevertheless, logged beneficial properties on Friday. Overcoming combined cues from world markets, the fairness benchmarks discovered firmer floor as buyers accrued vitality, infra and IT shares. The Sensex ended 142.81 factors, or 0.24 per cent, increased at 59,744.65. The Nifty rose 66.80 factors. or 0.38 per cent, to shut at 17,812.70.

Global markets have been combined forward of key US jobs information, which is able to give cues on the Federal Reserve’s price hike trajectory.
On a weekly foundation, the Sensex superior 1,490.83 factors or 2.55 per cent, whereas the Nifty gained 458.65 factors or 2.64 per cent.
Meanwhile, the rupee managed beneficial properties of 8 paise over the US greenback to shut at 74.34 on Friday, helped by weaker dollar towards key rivals and constructive home equities.  with PTI