MUMBAI: Indian government bond yields rose in the early session on Wednesday as bets of aggressive rate cuts from the US Federal Reserve eased following cautious comments from a central bank official.
India’s benchmark 10-year yield was at 7.1504% as of 10:00 a.m. IST, after its previous close at 7.1460%.
“Indian bond yields will closely track movements in Treasuries, and significant local moves may not occur until the 10-year yield falls below the 4% handle,” a trader with a state-run bank said.
US bond yields ended higher on Tuesday, reversing the recent bullish tone amid a resistance to expectations of aggressive interest rate cuts.
The US is “within striking distance” of the Federal Reserve’s 2% inflation goal, but the central bank should not rush towards cuts in interest rate until it is clear lower inflation will be sustained, Fed Governor Christopher Waller said on Tuesday.
Waller’s comments are crucial, as his…
