Indian government bond yields were marginally higher in early deals on Tuesday, tracking a sharp uptick in U.S. peers, even as the local central bank’s monetary policy decision remains a major trigger.
The benchmark 10-year bond yield (IN067934G=CC) was at 6.4866% as of 10:30 a.m., up from Monday’s close of 6.4836%.
Its U.S. counterpart surged 17 basis points on Monday to 4.15%, posting its largest daily leap in a year, on rising optimism that some countries may negotiate deals with U.S. President Donald Trump to avoid trade tariffs.
Last week, Trump announced his plan to enforce a 10% baseline tariff on all imports to the United States, along with steeper reciprocal tariffs on the country’s biggest trading partners.
The domestic market, which often mirrors the movement in the U.S. treasury yields, has also grown wary amid trade war fears.
“An escalating trade war may trigger a slowdown, which is positive for bonds but in case of…
