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Bonds Steady at 7.01% as Oil Prices Dip, US-Iran Talks Boost Sentiment
M
Moneycontrol•23-09-2026, 09:49
Bonds Steady at 7.01% as Oil Prices Dip, US-Iran Talks Boost Sentiment
- •Sovereign bond yields remained unchanged at 7.01% after oil prices fell below $100, driven by optimism surrounding US-Iran talks at the UN General Assembly.
- •Brent crude dropped to around $99 a barrel, a nearly 10% correction from last week's highs of $110, improving market sentiment.
- •Despite the positive oil price movement, caution persists due to ongoing US-Iran tensions, with President Trump issuing a stark warning to Iran.
- •Analysts at MUFG noted the positive impact of moderated oil prices for Asia but highlighted the continued uncertainty regarding a resolution to the conflict.
- •Rate hike expectations for the RBI's upcoming MPC review are rising, influenced by August retail inflation at 4.82% and the US Federal Reserve's recent 25 bps rate increase.
Key Questions Answered
Sovereign bond yields opened unchanged at 7.0106 percent after oil slipped below $100 due to growing optimism around US-Iran talks on the sidelines of the UN General Assembly.
Multiple market participants expect the RBI to raise interest rates by 25 basis points to 5.5 percent when its Monetary Policy Committee meets from October 5-7, driven by rising rate hike bets following August retail inflation of 4.82 percent and the US Federal Reserve's recent rate hike.
The rupee opened two paise higher at 95.57 against the dollar. According to CR Forex Advisors, the USD/INR pair is likely to appreciate in the near term, and if it sustains below Rs 95.70, the probability of a move towards Rs 95 to Rs 95.20 will increase.
