What is the relationship between bond prices and interest rates

The Reserve Bank of India (RBI) will not let go off the bond market, deputy governor Michael Patra said June 24, adding that the central bank will aid the government's market borrowing. “(The) RBI is reacting on an ongoing basis,” Patra said at an event in New Delhi. “This year we have to shift our gaze to inflation but we will not let go off the bond market and we will make dispensation of other type like the HTM (held to maturity).” In this year’s budget, the government had estimated a fiscal deficit target of 6.4 percent of gross domestic product. Simply put, a fiscal deficit occurs when the government’s expenditure exceeds revenue from taxes and other sources. A fiscal deficit is mainly financed through market borrowings like treasury bills and government bonds. New Delhi aims to borrow a record Rs 14.31 lakh crore via bonds this financial year. The RBI, as the government's debt manager, is expected to manage the borrowing programme and keep yields low. It is currently … [Read more...] about RBI will not let go off bond market, says Deputy Governor Patra

Copper or Doctor Copper as market analysts refer to it due to its reputation of having a “Ph.D. in economics” because of its ability to predict the direction of global economy, has tumbled significantly in the recent past and is currently trading at its 15-month low on the London Metals Exchange (LME). The past trends of copper prices and global economic growth have signified that both the copper prices and global economy move in tandem and one can predict the turning points in global economy based on the direction of global copper prices. Experts are of the opinion that the correlation between copper prices and global economic health does largely hold good, though, at times there might be some brief aberrations. “Aberrations may occur due to governments’ interventions in the form of fiscal stimulus, or the major central bankers’ trying to respond to the changing macro-economic conditions by the way of change in their monetary policies”, said Praveen Singh, AVP, Fundamental … [Read more...] about Dr Copper’s falling prices indicate more ailments on the cards for global economy

NEW YORK: Oil price s settled up by more than US$ 3 a barrel on Friday, supported by tight supply, but they notched their second weekly decline on concern that rising interest rates could push the world economy into recession. Brent crude LCOc1 settled up $3 .07 , or 2.8 %, at $113.12 a barrel by 1 2:10 p.m. EDT (1610 GMT). U.S. West Texas Intermediate (WTI) crude CLc1 s ettled up $3.35 , or 3 .2 %, at $107.62. T he U.S. Federal Reserve "was talking very hawkish which was undermining the oil rally, but sentiment is changing a little especially on strong economic data," said John Kilduff, partner at Again Capital LLC in New York. On Thursday, Fed Chair Jerome Powell said the central bank's focus on curbing inflation was "unconditional", adding to fears about more interest rate hikes. Read full story A survey on Friday showed U.S. consumer sentiment hit a record low in June even as the outlook for inflation improved slightly. Read full … [Read more...] about Oil price settles up but posts weekly decline on recession fears

(Image Courtesy: Oppo) Oppo K10 5G smartphone has been launched in India. The phone has a 6.56-inch display, and houses MediaTek's Dimensity 810 SoC, which has support for 5G networks. Oppo K10 5G Pricing and Offers The Oppo K10 5G only has a single variant, with 8GB of RAM and 128GB of internal storage. It has been priced at Rs 17,499 and will go on sale, starting June 15 at 12 noon, on Flipkart, Oppo Online Store, and authorized retailers offline. Customers will be able to pick between two colors - Black and Blue - and people who buy the phone online, can opt for a No Cost EMI for up to 3 months. If you use SBI, Axis Bank,  Bank of Baroda, or Kotak Mahindra Bank debit or credit cards, you can get a flat discount of Rs 1,500. Also Read: OPPO Reno 8 Lite 5G launched with Snapdragon 695 SoC, AMOLED display: All you need to know Close Oppo K10 5G Specifications The smartphone houses MediaTek's Dimensity 810 SoC, that has been paired with 8GB of RAM, … [Read more...] about Oppo K10 5G with MediaTek Dimensity 810 SoC launched in India; check price, specs, sale date

The Taegeukgi, or Korean national flag, and the Samsung Electronics flag fly outside the company’s office in Seocho District, southern Seoul. [JOINT PRESS CORPS] Comments on a recent YouTube video featuring Samsung Electronics Vice Chairman Lee Jae-yong conjure up thoughts of comment sections under popular K-pop music videos. With over 10,000 comments, many flocked to praise Lee for welcoming U.S. President Joe Biden during his visit to Korea in fluent English, calling the 54-year-old businessman the “pride of Korea” and “a true patriot.” But in another alley, called the civic group community, Lee, son of late Samsung Electronics Chairman Lee Kun-hee, is labelled an aggressor, disrupting the country’s order and legal system due to his history of violating the law. Samsung Electronics Vice Chairman Lee Jae-yong shakes hands with U.S. President Joe Biden on May 20 at the company's chip plant in Pyeongtaek, Gyeonggi. [YONHAP] The contrasting views over just one person … [Read more...] about [WHY] Koreans’ love-hate relationship with Samsung

Having the retail price of rice at P20 per kilo sounds nice in a speech, but is so far away from the market price to be feasible in six, or even 12, years, that it is doomed to failure. Making oneself personally responsible for the failure by becoming the secretary of agriculture seems like taking the advice of one’s enemies. Rice has grown more expensive in terms of money just like everything else, due to general inflation, which gradually lowers the value of money. The inflation that matters is the general increase in the cost of living for consumers. This general inflation rate is the strongest correlate—stronger than agricultural productivity—with poverty and hunger. It averages the increases in prices of very many consumer goods, not just rice. For any single item, such as rice, the market price is determined by supply and demand. For the government to interfere with the market is too costly. To return to the monopolization of rice imports by the National Food Authority—the … [Read more...] about Fight inflation, not prices

- A + A NEW YORK (June 25): The US dollar slipped on Friday (June 24) and posted its first weekly decline this month as traders pared back bets on where interest rates may peak and brought forward their outlook on the timing of rate cuts to counter a possible recession. A significant factor this week has been the fall in oil and commodity prices, which has eased inflation fears and allowed equity markets to rebound. This has eroded the safe-haven bid that has been boosting the dollar against major currencies. "Falling commodity prices could help pull headline inflation prints downwards — particularly into the autumn months — reducing the need for aggressive monetary tightening," said Karl Schamotta, the chief market strategist of payments company Corpay in Toronto. US federal funds futures on Friday priced in a 73% probability of a 75-basis-point (bps) increase in the July meeting. But for September, the market has fully factored in just a 50bps rise. The market … [Read more...] about US dollar retreats as markets reassess Fed rate path

- A + A NEW YORK/BENGALURU (June 24): US stock index futures rose on Friday, as signs of slowing economic growth and falling commodity prices eased expectations over how high the Federal Reserve will raise interest rates to rein in inflation. Fears that aggressive tightening by major central banks will cause a sharp economic downturn have roiled financial markets this month, pushing the benchmark S&P 500 to confirm a bear market or a 20% fall from its recent peak. Data on Thursday showed US business activity slowed considerably in June, driving investors to scale back bets on where interest rates may peak and bring forward their views on the timing of rate cuts. Money markets see US interest rates peaking at around 3.4% by next March, far below the just above 4% priced for June 2023 before last Wednesday's Fed meeting. Copper prices on Friday were set for their biggest weekly fall in a year and other industrial metals also tumbled, while crude oil was headed … [Read more...] about Futures rise as investors scale back rate hike expectations

- A + A NEW YORK/BENGALURU (June 24): Wall Street's main indexes climbed more than 2% on Friday, as signs of slowing economic growth and a recent weakening of commodity prices tempered expectations over how high the Federal Reserve will raise interest rates to rein in inflation. Global financial markets have been roiled this month on worries that rapid rate hikes by major central banks could cause a recession, with the benchmark S&P 500 confirming a bear market last week as it recorded a 20% drop from its January closing peak. The three main indexes looked set to notch their first weekly gain of the month, boosted by megacap growth stocks and defensive sectors such as healthcare and utilities seen as safer bets during times of economic uncertainty. "The reality is there's some optimism that the weakening economy, the stronger potential for a recession down the road could actually impede the Fed's aggressive hiking schedule," said Ryan Detrick, chief market … [Read more...] about Wall St rallies as traders dial back rate-hike bets

The 25-basis-point (bp) increase in the key interest rate of the Bangko Sentral ng Pilipinas (BSP) announced on Thursday that affirmed a gradual path to tightening of monetary policy was a disappointment to analysts who believe the BSP should be more aggressive. But Pantheon Macroeconomics said the next hike might not come until next year. Miguel Chanco, the United Kingdom-based research firm’s chief economist for emerging markets in Asia, said in a commentary that this week’s rate hike—a repeat of the Monetary Board (MB) decision in their meeting last May—was “a no-brainer.” Chanco said this was so, especially considering that BSP Governor and MB chair Benjamin Diokno had explicitly said that this month’s decision was likely a 25-bp increase in the interest rate on the central bank’s overnight borrowings from banks. “Not surprisingly, inflation remains front-and-center in the board’s mind, as it raised its inflation forecasts further to 5 percent and 4.2 percent for this year … [Read more...] about Contrarians see BSP pushing back next rate hike to 2023