India's 10-Year Bond Yield Edges Lower Amid Decline in Oil Prices

Indian Benchmark 10-Year Bond Yield Edges Lower

India's benchmark 10-year bond yield decreased on May 14, trading at 7.038 percent at 9:05 am. This represents a 2 basis point decline from its previous close of 7.049 percent.

Foreign investors continued to make significant purchases, buying Rs 6 crore worth of sovereign bonds under the available investment limits. Additionally, they added Rs 186 crore of corporate debt, according to market data. State-run banks also participated in the market, purchasing Rs 1,810 crore of sovereign bonds on May 13. Foreign banks bought Rs 814 crore worth of bonds, as shown by CCIL data.

The benchmark yield had traded higher on Wednesday due to the weakening rupee and elevated crude oil prices. However, equity markets ended higher after paring intraday gains. Brent crude prices eased, slipping below $106 per barrel, as traders closely watched the meeting between President Donald Trump and Chinese President Xi Jinping, US Treasury yields, OPEC+ commentary on supply discipline, and geopolitical developments surrounding the West Asia conflict and the Russia-Ukraine war.

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Market participants observed that Brent crude continues to trade above its 50-day moving average, indicating modest near-term upside momentum. However, the 200-day moving average suggests that the broader year-to-date rally remains intact.

Stronger-than-expected US producer price inflation data supported the dollar index, although it struggled to move decisively above the 98.50 mark as crude prices eased slightly. The Trump-Xi meeting is expected to be crucial for the direction of oil prices and the dollar index.

Comparison of Crude Oil Prices

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Note: The prices are for comparison purposes only.