A Bond Market Bonanza: India's 10-Year Yield Reaches New Depths

India's 10-year government bond yield has reached its lowest level since January 2022 due to rising expectations of rate cuts and strong foreign inflows. The yield hit a recent low of 6.5823%, which is a big decline from its past levels. The Reserve Bank of India's (RBI) aggressive liquidity injection and dovish monetary policy have led to the fall in yield. The RBI is likely to reduce rates again in April, which has raised the hopes of investors and spurred demand for government papers. Foreign investors have also been aggressively buying Indian bonds, helping the yield to decline.

 

Source: Reuters, Economic Times, TradingView