What’s going on here?
Indian government bond yields slipped on Monday, boosted by trends in US Treasuries and the Reserve Bank of India’s monetary policies.
What does this mean?
The benchmark 10-year yield for Indian government bonds moved down to 6.6990% from 6.7065%. This mirrors a dip in the US 10-year Treasury yield, which hit a two-week low as economic signals point to slowing growth – fueling talks of possible rate cuts by the Federal Reserve. Declines in US business activity, consumer sentiment, and home sales played a role. Simultaneously, the Reserve Bank of India aimed at boosting liquidity, scheduling a dollar/rupee swap auction to pump 870 billion rupees into the market. Since mid-January, the RBI has injected over 3.6 trillion rupees using assorted liquidity measures, against the backdrop of inflation nearing the bank’s 4% target.
Why should I care?
For markets: Bond yields take a gentle slide.
US Treasury yield dips are…
