The yield on benchmark 10-year government bonds could rise by 4 basis points (bps) over the three-month period, while the change for corporate and government bonds could reach 11 bps, did he declare.
The benchmark 10-year bond was at 7.11% at the end of June, gaining 12 basis points during the month. In July, it should oscillate between 7.05% and 7.15%, according to the Crisil perspective.
Government development bonds tightened by 5 bps to 7.39% and corporate bonds (10-year public sector financial institutions) by 12 bps to 7.49% in June. housing development Finance Corporation, now merged with HDFC Bank, saw yields rise 5 basis points to 7.76% in June. Yields on 10-year bonds of non-bank financial corporations and AAA-rated public corporations ended at 7.70% and 7.49% respectively in June.
During the September quarter, returns are expected to be affected by movements in crude oil prices, inflation, fiscal figures, Indian and US central bank rate decisions, Indian economic growth trend and foreign portfolio flows, Crisil said in his outlook on bond yields.
Consumer price inflation is expected to ease to 5% and India’s GDP growth is expected to slow to 6% in FY24. The RBI, meanwhile, is expected to maintain the status quo on rate at future meetings.
Crisil expects crude oil prices to average $75 to $80 a barrel this fiscal year, up from $95 last year. rupee.
india current account The deficit is declining, and if this trend continues, the rupee could appreciate further, Crisil said, adding, “REITs are likely to bring more inflow to India in such a scenario.”
