10-yr Indian govt bond yields may ease due to range-bound US bond yields and reduced expectations of Fed easing.
Indian govt bond yields may ease on Monday following US peers due to lack of fresh directional cues, with the 10-yr benchmark yield predicted to range between 6.85% and 6.89%. Expectations of an aggressive Fed easing have been scaled back, leading to range-bound movement in US and local bond yields. Fed traders now see a 74% chance of a 25 bps rate ease in Sept. Traders will also watch minutes from recent Fed and RBI meetings. The RBI is expected to lag the Fed on rate cuts, focusing on domestic inflation.
August 19, 2024
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