The cost of insuring U.S. Treasuries against default fell to its lowest in months on Thursday, after Congress passed a bill to suspend the $31.4 billion borrowing limit, thereby avoiding a potentially catastrophic sovereign default.
STOCKS: The benchmark BSE Sensex rose 25.46 points, or 0.04%, to 62,647.7, while the broader NSE index gained 11.7 points, or 0.06%, to 18,546.1 as stronger-than-expected domestic growth data boosted sentiment. RUPEE: The Indian rupee strengthened 0.27% versus the U.S. dollar, and quoted at 82.51 per dollar as better than expected GDP data drove traders to cut their long USD/INR positions.
Euro zone bond prices on Thursday held onto most of their recent gains inspired by lower-than-expected inflation data from major European markets. Germany's 10 year yield was 2.298%, up 3 basis points on the day, but down 24 bps on the week so far. Bond yields move inversely to prices.
Japan's 10-year government bond yield reversed course to fall and futures rose on Thursday after a smooth auction outcome eased investor sentiment. The 10-year JGB yield fell 1.5 basis points to 0.415% after rising to as high as 0.435%. The auction received bids worth 3.69 times the amount sold, higher than a ratio of 3.6 times at the previous auction.
STOCKS: The benchmark BSE Sensex rose 110.82 points, or 0.18%, to 62,733.06, after India's March quarter GDP growth trumped expectations. RUPEE: The Indian rupee strengthened 0.35% to 82.45 to the U.S. dollar, tracking recovery on Asian peers and on stop losses, traders said.
Large U.S. companies have been on a bond issuance binge but this rapid pace in supply may be hard to sustain ahead of expected volatility related to extending the U.S. debt ceiling and another possible move higher in interest rates.
Peru's economy ministry said on Wednesday it had placed bonds worth 9.2 billion soles set to mature in 10 years on the international market, with a coupon of 7.30%. This marks the first time Peru has issued bonds in its local currency, the sol, internationally since 2019, Economy Minister Alex Contreras told Reuters in an interview.
China's cash-strapped local governments have suddenly rushed to an unusual corner of the debt market in Shanghai where ambiguous rules offer ways to skirt restrictions on onshore borrowing. Some analysts have described local government financing vehicles as the "black hole" of China's financial system, with debts of more than $9 trillion and rising.
Peru's economy ministry said on Wednesday it had placed bonds worth 9.2 billion soles set to mature in 10 years on the international market. This marks the first time Peru has issued bonds in its local currency, the sol, since 2019, Economy Minister Alex Contreras told Reuters in an interview.
Peru's economy ministry said on Wednesday it had placed bonds equivalent to $2.5 billion in local currency, maturing in 10 years, on the international market.
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