What’s going on here?
Indian government bond yields are poised to climb on Tuesday, reacting to a renewed selloff in US Treasuries driven by rising political uncertainties and tighter scrutiny on foreign inflows.
What does this mean?
The benchmark 10-year Indian government bond yield is expected to trade between 6.99% and 7.03%, up from its previous close of 7.0105%. This uptick follows the US 10-year Treasury yield hitting a one-month high, nearing 4.50%, amid political uncertainties surrounding the upcoming US and French elections. Investors are reacting to president Joe Biden’s recent performance, which has sparked speculation about a potential comeback for the US’s former president, resulting in a selloff of treasuries. Despite this, expectations for rate cuts by the Federal Reserve in 2024 remain steady, with predictions of 46 basis points of cuts, according to the CME FedWatch tool.
Why should I care?
For markets: Navigating bond…
