MUMBAI, March 14 (Reuters) – Indian government bond
yields are expected to move marginally higher in early trades on
Thursday, as Treasury yields resumed their rising trend in the
run-up to the Federal Reserve’s monetary policy decision after a
brief fall in recent days.
The benchmark 10-year yield is expected to
drift in the 7.03%-7.07% range, following its previous close of
7.0405%, a trader with a private bank said.
“With the 10-year Treasury yield back to near 4.20% levels,
we could see some impact on sentiment, but any large selloff can
be safely ruled out in the Indian fixed income market, as
broader fundamentals and demand-supply dynamics seem
favourable,” the trader said.
U.S. yields continued to rise, as traders speculated that
stubborn inflation reading, evident in recent data, may convince
the Fed to hold off cutting rates aggressively.
The consumer price index rose…
