Offers & Promotions Download Brochure Get a Call Back Download App
Contact us

India Bonds Fall For Second Month On Geo-Political, Supply Woes

28 February 2019 / Evening Brief

Indian Rupee

  • The rupee settled at 70.72 against 71.22 at the previous close. The local unit moved in 70.72 -71.26 per dollar band intra-day.
  • Indian government bond prices fell for a second consecutive month, as geo-political and supply concerns weighed on investor appetite, despite a turn in the monetary policy cycle. The larger-than-expected supply was the main trigger to drag bond prices lower this month. As the focus shifted towards India-Pakistan geo-political tensions, yields hardened further and fear of a war continues to lurk. U.S., China and other major nations have called on the nuclear-armed neighbors to exercise restraint.

Global Currency

  • The dollar held above a three-week low on Thursday as investors remained cautious amid uncertainty over the progress in U.S.-China trade talks, while sterling rallied on bets that the chance of a no-deal Brexit was shrinking.
  • The yuan was little changed on Thursday in Asia following the release of weaker-than-expected Chinese PMI data. This month’s manufacturing PMI came in at 49.2, down from 49.5 in January, official data showed. The February reading was expected to unchanged from last month. A reading below 50 means the manufacturing sector contracted, while a PMI above 50 represents an expansion when compared with the previous month.

Global Markets

  • Oil prices fell on Thursday, as U.S.-China trade tensions persisted, the Chinese economy showed signs of slowing and record U.S. production undermined OPEC-led output curbs.
  • Gold rebounded on Thursday from a near two-week low touched in the previous session as the dollar retreated, keeping bullion on track for a fifth straight monthly gain, while investors awaited economic data from the United States and clarity on its trade talks with China.

Global Markets at one Glance

Markets at 5.00pm In INR % Change
USD/INR 70.73 70.73 -0.6
EUR/USD 1.14129 80.79 -0.23
GBP/USD 1.3301 94.10 -0.66
USD/JPY 110.786 0.64 -0.45
SEK/INR 9.1740 7.7098 0.0324
DKK/INR 6.301 11.2250 0.49
AUD/USD 1.4001 50.55 -0.68
DXY 95.846 -0.32
Index Today % Change
NIFTY 10792.5 -0.13
SENSEX 35867.44 -0.11
NIKKEI 21385.16 -0.79
HANG SENG 28633.18 -0.43
SHANGHAI 2940.9538 -0.44
CAC# 5227.5 0.04
FTSE # 7264.61 0.0042
DAX # 11487.35 0
Commodities Today % Change
GOLD # 1326 0.47
SILVER# 15.755 0.53
BRENT # 66.03 -0.54
NYMEX # 56.81 -0.23
Today Today
OPEN 71.2600
HIGH 71.2600
LOW 70.7200
CLOSE 70.7200

Key Events of the Day

Date Time Currency Event Actual Forecast Previous
28/02/2019 17:30 INR GDP Quarterly (YoY) (Q3) 6.6% 6.9% 7.1%

Share this post?