Indian government bond yields dipped in the early session on Tuesday, tracking a sharp decline in U.S. Treasury yields, but the decline was limited as traders braced for heavy supply from states.
The benchmark 10-year yield was at 6.6960% as of 10:00 a.m. IST, compared with its previous close of 6.7024%.
“There is some impact from Treasuries, but we do not anticipate any major move and yield should move sideways till the inflation data,” a trader with a state-run bank said.
The U.S. 10-year yield eased by 11 basis points on Monday as demand for safe-haven assets increased after President Donald Trump declined to rule out a recession as a result of his tariff policies.
These comments also led to a jump in expectations of interest rate cuts in the world’s largest economy, with Fed futures pricing around 86 basis points of rate cuts in 2025, up from around 69 bps on Monday.
Indian states are set to raise 495.22 billion rupees ($5.67…
