The benchmark ten year yield is around 7.14 per cent, close to a two year high, though it eased slightly as crude pulled back from recent peaks and bets on further American rate rises cooled. Traders are now watching the Reserve Bank’s policy meeting on 7 October closely.<\/p>\n
Three forces pull yields around. Costly oil raises inflation worry, since we import nearly 90 per cent of our crude. The American ten year yield near 5.2 per cent makes dollar bonds competitive. And the central bank is selling Rs 1 trillion of bonds to drain surplus cash, adding supply when buyers feel nervous.<\/p>\n
Retail inflation reached 4.82 per cent in August, so a rate increase looks likely. Higher yields mean costlier home and car loans and softer prices for existing bonds. So stay with shorter duration debt funds, lock money into fixed deposits while rates are attractive, and avoid stretching new borrowing now.<\/p>\n","protected":false},"excerpt":{"rendered":"
The benchmark ten year yield is around 7.14 per cent, close to a two year high, though it eased slightly as crude pulled back from recent peaks and bets on further American rate rises cooled. Traders are now watching the Reserve Bank’s policy meeting on 7 October closely. Three forces pull yields around. Costly oil… Read More »Why should you care that government bond yields are hovering near seven per cent<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-5035","post","type-post","status-publish","format-standard","hentry","category-economy-2"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/5035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=5035"}],"version-history":[{"count":1,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/5035\/revisions"}],"predecessor-version":[{"id":5036,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/5035\/revisions\/5036"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=5035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=5035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=5035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}