What’s going on here?
Indian government bond yields edged slightly lower, with the 10-year benchmark yield closing at 6.8521%, just a hair down from the previous 6.8578% close.
What does this mean?
While the 10-year yield didn’t dip below the 6.85% mark, all eyes are now on the US. Investors are keenly awaiting guidance from Fed Chair Jerome Powell, as US bond yields reacted to revised jobs data and potential rate cuts. Latest figures show fewer job additions than initially reported, sparking labor market concerns. The Fed minutes from July point to a high likelihood of a rate cut in September, with about 32% odds for a 50 basis point cut and increased bets on a 100 bps cut in 2024.
Why should I care?
For markets: Eyes on Powell’s pulse.
Comments from Fed Chair Jerome Powell at the Jackson Hole symposium will be pivotal. If Powell signals a 50 bps cut in September, it could steer India’s 10-year yield closer to the 6.80% mark. Indian…
