Bond yield fell as finance minister advocates rate cut1 min read . Updated: 29 Jul 2019, 09:17 AM IST
- The Indian currency opened at 68.93 a dollar
- Yield on the 10-year government bond was at 6.445%
Mumbai: The 10-year government bond yield on Monday fell nearly 8 basis points after Finance Minister Nirmala Sitharaman said a rate cut will help the economy and the government is reviewing proposal to issue any sovereign debt overseas.
At 9.10 am, the yield on the 10-year government bond was at 6.445% compared with Friday's close of 6.524%.
“There is further room for reduction in interest rates," Bloomberg reported quoting Sitharaman by the Economic Times as saying. “I’ll honestly wish a rate cut. And yes a significant rate cut would do a lot of good for the country"
The next meeting of the monetary policy committee (MPC) will be held from 6-7 August.
Meanwhile, Indian rupee was trading little changed tracking mixed Asian currencies against US dollar as traders look forward to the resumption of the US-China trade talks and the Federal Reserve’s policy meeting this week.
The Indian currency opened at 68.93 a dollar. The domestic currency traded at 68.92, down 0.02% from its previous close of 68.91.
US Federal Reserve Meet on 30-31 July and is expected to cut interest rates by a quarter percentage point.
The benchmark equity index Sensex was up 0.2% at 37831.18 points. So far this year, the index has risen 5%.
The rupee has risen 1.26% against the greenback in the year so far. Foreign investors bought $9.33 billion in Indian equities and $2.70 billion in the debt market during the period.
Asian currencies were trading mixed. Japanese yen was up 0.12%, Philippines peso 0.11%, Thai Baht 0.06%. However, China Offshore spot was down 0.2%, China renminbi 0.18%, Singapore dollar 0.14%.
The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.976, down 0.03% from its previous close of 98.01.
(Bloomberg contributed to this story)