Indian Bond Yields Stabilize Following Recent Fall

Indian government bond yields are likely to stay fairly stable in today's trading session after their recent fall. The benchmark 10-year bond yield is now at 6.6483%, down marginally from its last close of 6.6601%. This stability follows the Federal Reserve's decision to keep its forecast of two interest rate cuts in 2025 intact, alleviating fears of negative surprises. The sentiment in the market is still upbeat, aided by robust demand for state debt as well as the Reserve Bank of India's scheduled bond purchase of 500 billion rupees on March 25. Nevertheless, traders are expecting that the benchmark yield can drop to below 6.65% only in the short term.

 

Source: Reuters