Secondary Bond market yields edge down on shorter tenors

Foreign holdings in Rupee treasuries records net outflow for third consecutive week Money market liquidity reduces Rupee depreciates

- BY WEALTHTRUST SECURITIES

THE Secondary Bond market started off last week positively. Yields declined during the first half of the week, reflecting renewed demand, particularly as concerns over the Israel-Iran conflict continued to fade.

During the midweek, yields were seen consolidating, with trading confined to a narrow band. However, at the end of the week, profit-taking pressure and the announcement by US President Trump regarding potential 20-25-30% tariffs added to market uncertainty surrounding the upcoming Reciprocal Tariff Suspension deadline on 9 July, weighing on bond market sentiment. Despite this, Secondary Bond market yields closed the week marginally lower on a week-on-week basis mainly on 2026-2028 tenors. Market activity and volumes overall seen at healthy levels, despite sporadic periods of low participation and temporary standstills, signalling a stable yet cautious trading environment.