What’s going on here?
Indian government bond yields are expected to stay steady as the market focuses on the Reserve Bank of India’s (RBI) upcoming rate decision amidst ongoing inflation worries.
What does this mean?
Following recent fluctuations in US Treasury yields, Indian bond yields are likely to remain within a narrow range. The 10-year Indian bond yield is forecasted to hover between 6.85% and 6.89%, close to its recent mark of 6.8767%, while the US equivalent stands around 3.90%. Investors are now keenly watching local happenings, particularly with the RBI expected to keep policy rates unchanged for the ninth consecutive time to address high inflation. Some economists predict a minor rate cut later this year, but significant reductions seem unlikely. Bank of America’s head of Indian fixed income suggests a potential 100 basis point cut starting in December. Meanwhile, US Treasury yields inched up as recession fears eased…
