Indian government bond yields dipped in early deals on Thursday, tracking a similar move in U.S. Treasury yields after the Federal Reserve maintained its projection of two interest rate cuts in 2025.
The benchmark 10-year bond yield (IN067934G=CC) was at 6.6483% as of 10:00 a.m. IST, compared with its previous close of 6.6601%.
“Market was fearing some negative surprise from the Fed, but since that has not materialised, bulls will continue to dominate,” a trader with a primary dealership said.
“However, the benchmark bond yield may not fall below 6.65% for now.”
U.S. bond yields eased after Fed policymakers indicated on Wednesday that they still anticipate reducing borrowing costs by half a percentage point by the end of this year.
Some traders had speculated that the Fed may lower its rate-easing forecast to 25 basis points due to the ongoing tariff war.
The Fed raised its forecasts for inflation, while cutting its projections on…
