Indian bond yields dropped in the afternoon of September 19 following the US Federal Reserve‘s interest rate cut.
By 12:33 PM, the yield on the Indian 10-year benchmark bond, the 7.10 percent 2034, was at 6.7414 percent. This was down from 6.7896 percent at the opening and 6.7808 percent at the close of the previous trading session.
On Wednesday, the Federal Reserve cut its benchmark interest rate by half a percentage point, marking a bold beginning to a policy shift designed to strengthen the US labor market.
After their two-day meeting, projections revealed that a slight majority of 10 out of 19 officials supported reducing rates by at least another half-point during their remaining two meetings in 2024.
The Federal Open Market Committee decided by a vote of 11 to 1 to lower the federal funds rate to a range of 4.75 percent to 5 percent, after maintaining it at its highest level in two decades for over a year.
Wednesday’s decisive…
