Mumbai, Aug 29 (SocialNews.XYZ) The yield on 10-year benchmark 6.54 per cent-2032 bond yield ended higher on Monday as investors sentiments got dampened after US Federal Reserve Chair Jerome Powell signalled interest rates would be kept higher for longer to bring down soaring inflation.
The yield on benchmark bond ended at 7.2534 per cent as against 7.2173 per cent at the close on the previous trading session.
"Today the bond market was a bit nervous on the comments and guidance by the Fed that they shall be not hesitant to keep taking rates higher to tame inflation. It looks like that today, rates moved in tandem with west and may settle down in coming days, in the light of investors' interest to invest and take exposure to market than being fearful... limit the losses and hope the worst is behind, stability is what most important," said Ajay Manglunia, Managing Director & Head, Fixed Income at JM Financial.
US Fed Chair Powell, at the Jackson Hole Economic Symposium, made it clear that the central bank's fight against inflation was not over and Fed was likely to keep raising interest rates to stamp out inflation.
"Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy," Powell added.
Going forward market participants expect markets are likely to be in narrow range. "Markets likely to be in a narrow range till we have next policy in next month end," Manglunia added.
Source: IANS
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