MUMBAI, Jan 17 (Reuters) – Indian government bond yields
rose in the early session on Wednesday as bets of aggressive
rate cuts from the U.S. Federal Reserve eased following cautious
comments from a central bank official.
India’s benchmark 10-year yield was at
7.1504% as of 10:00 a.m. IST, after its previous close at
7.1460%.
“Indian bond yields will closely track movements in
Treasuries, and significant local moves may not occur until the
10-year yield falls below the 4% handle,” a trader with a
state-run bank said.
U.S. bond yields ended higher on Tuesday, reversing the
recent bullish tone amid a resistance to expectations of
aggressive interest rate cuts.
The U.S. is “within striking distance” of the Federal
Reserve’s 2% inflation goal, but the central bank should not
rush towards cuts in interest rate until it is clear lower
inflation will be sustained, Fed Governor…
