Gold Silver Reports (GSR) – Bonds Poised To Fall On Surge In Oil Prices – Indian bonds are poised to fall as a surge in global crude oil prices spurs concern that inflation will accelerate………. Crude Oil prices jumped on Tuesday as the U.S. pressed allies to end all imports of Iranian oil by a November deadline and said it didn’t want to offer any extensions. The 10-year bond yield climbed for a third day yesterday, rising 1 basis point to 7.83 percent……….
Expectations that the Reserve Bank of India could announce more bond purchases are likely to keep a cap on yields. Data from CCIL showed that state-run banks were net buyers of bonds on Tuesday while foreign banks sold………….
Meanwhile, the rupee is seen under pressure as oil, India’s biggest import item, surges. The implied opening from forwards suggest the spot rupee will start trading at 68.44, down from 68.25 per dollar on Tuesday.
Overseas, the dollar and treasury yields are holding steady with investors focused on the simmering trade tensions are awaiting more clarity from the White House on its plans.
