MUMBAI, Dec 28 (Reuters) – Indian government bond yields
are expected to trend marginally lower on the penultimate
trading day of 2023, tracking U.S. yields, amid growing bets of
a policy pivot from the Federal Reserve in the new year.
The 10-year benchmark bond yield is expected
to move in the 7.17%-7.20% range on Thursday, after closing at
7.2074% in the previous session, a trader with a private bank
said.
“There was some selloff yesterday, but there could be some
bullish tilt to the trading today, as Treasury yields have
decline and broken the key levels. But for any large moves it
needs to sustain,” the trader said.
U.S. yields declined, with the 10-year yield
sliding to below 3.80%, to its lowest level in over five months,
as investors anticipate a mild economic recession in the U.S.
heading into 2024, which could push the Fed to cut rates.
Markets are pricing in around…
