Bond yields, which closed at 6.82%, were down three basis points from their previous close of 6.85%, data from the Clearing Corporation of India showed.
“US treasury “Yields have dropped by 6-7 basis points due to the drop in crude oil prices yesterday. If the US CPI data is below expectations, then we may see similar levels, or yields may even fall,” said a bond trader at a primary dealer.
Ten-year U.S. Treasury yields fell to 3.6068%, the lowest level since June 2023, according to Reuters.
Brent crude futures, the global oil benchmark, closed at their lowest level since December 2021 on Tuesday after OPEC+ revised down its demand forecast for this year and 2025. There were also concerns about supply. Tropical Storm Francine approaching through the Gulf of Mexico, forcing operators to shut in about a quarter of offshore crude production.
The focus is on US consumer price index (CPI) data, expected on Wednesday after the market close. US inflation, as measured by the change in the consumer price index (CPI), eased to 2.5% on an annual basis in August from 2.9% in July, according to the report. U.S. Bureau of Labor Statistics. The liquidity of the banking system, measured by the net absorption of funds by the Reserve Bank of IndiaThe central bank’s balance sheet stood at a surplus of Rs 1.08 trillion as of Sept. 10, central bank data showed. The weighted average benchmark interest rate, which indicates banks’ overnight borrowing cost, closed at 6.54% on Wednesday, according to CCIL, four basis points above the Reserve Bank of IndiaThe central bank’s current repo rate, despite excess liquidity conditions in the banking system, money market traders said.
The WACR, which is the operational target of RBI’s monetary policy, stood at 6.50% on the previous day. CMR-A It is relieved when liquidity conditions in the banking system are surplus.
The government raised Rs 20,000 crore by selling 91-day, 182-day and 364-day Treasury bills (T-bills) in an auction conducted by the RBI. The cut-off yield for 91-day T-bills was 6.64%, while for 182-day T-bills it was 6.72%. For 364-day T-bills, the cut-off yield stood at 6.70%.
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