Indian government bond yields slipped on Thursday, with the 10-year yield below 7 per cent, tracking the drop in US peers after softer-than-expected US inflation data boosted bets of lower interest rates despite the Federal Reserve projecting only one cut this year.
India’s benchmark 10-year yield was at 6.9961 per cent as of 10:00 a.m. IST, following its previous close of 7.0121 per cent.
“For the benchmark yield, 7 per cent may now become the upside, unless there is a fresh negative trigger,” a trader with a primary dealership said.
US yields dropped on Wednesday, with the 10-year yield touching 4.25 per cent, its lowest level in over two months, after retail inflation reading came in cooler than expected, raising bets of rate cuts by the Fed.
The decline was partly reversed after the Fed maintained hawkish guidance and slashed its forecast to only…
