Indian government bond yields slipped on Monday, tracking a decline in U.S. Treasury yields, while liquidity measures by the Reserve Bank of India (RBI) supported sentiment in domestic markets.
The benchmark 10-year Indian government bond yield fell to 6.6990% in early trade, down from its previous close of 6.7065%, as investors priced in expectations of monetary easing by the U.S. Federal Reserve and additional liquidity from the RBI.
Global Factors Weigh on Yields
A series of weaker-than-expected U.S. economic data has fueled expectations of multiple rate cuts by the Federal Reserve in 2025. The 10-year U.S. Treasury yield dipped to a two-week low, following disappointing figures on U.S. business activity, consumer sentiment, and home sales. Markets are now pricing in at least two Fed rate cuts this year, which has bolstered emerging-market debt, including Indian bonds.
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