Indian Bond Market Rally Extends as US Treasury Prices Rise and Crude Oil Falls

New Delhi, 6 Nov (KNN) Indian government bonds continued their upward trend for a fourth consecutive session on Thursday, supported by a rally in US Treasury prices and an early decline in crude oil prices.

The positive movement in global bond markets and lower oil prices initially strengthened investor sentiment towards domestic government securities as per The Economic Times.

However, the gains were largely reversed during the session as crude oil prices recovered and traders booked profits following the recent rally.

Benchmark Bond Yield Declines Nearly 2 Basis Points

The yield on the benchmark 6.94 percent government bond maturing in 2036 fell nearly 2 basis points to 7.1710 percent on Thursday. The decline extended its fall over the past four sessions to around 24 basis points.

The yield had dropped to an intraday low of 7.0669 percent before rising as investors sold bonds to lock in gains. The movement reflected a moderation in buying momentum after the sustained decline in yields over the previous sessions.

Crude Oil Rebound Limits Gains

The recovery in crude oil prices weighed on the bond market, limiting the gains made earlier in the session. Higher crude prices are a concern for India because the country relies heavily on imported oil, which can increase inflationary pressures and affect government finances.

Despite Thursday's moderation, government bond yields remained lower for the fourth consecutive session, supported by favourable global cues and the earlier decline in oil prices.

(KNN Bureau)