Bond Market Rollercoaster: Will Rate Cut Hopes Survive Global Chaos?

India's bond market continues to be stuck between hope and fear as investors balance conflicting signals. Although the Reserve Bank of India's recent 25 basis point rate cut and bond purchases have enhanced liquidity, global uncertainties such as higher U.S. Treasury yields and tensions in geopolitics have kept yields in a tight band. The 10-year government bond yield closed at 6.72%, a mere 3 basis points higher from January.

 

Investors are cautious, looking for sharper policy signals from the RBI in its April meeting. With easing inflation but ongoing global risks, the direction of the market depends on reconciling domestic economic revival with global volatility.

 

Source: Moneycontrol