InvestorQ : Why are the bond yields in Indian bonds falling so sharply in the last couple of months and what does that indicate?
Ria Jain made post

Why are the bond yields in Indian bonds falling so sharply in the last couple of months and what does that indicate?

Answer
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Anu Biswas answered.
7 months ago


That is correct; the bond yields have fallen sharply in Indian in the last few months. Bond yields of the benchmark 10-year bonds in India fell sharply to its lowest point of the year at 6.23% (Previous low was 6.25%). The bond yields have lost nearly 60 basis points in last couple of months. This fall in bond yields was triggered by the Fed opting to cut rates by 50 basis points in one stroke to avert an economic slowdown. This put pressure on 10-year bond yields in the US falling below the 1% mark for the first time in 50 years. The markets in India are expecting the RBI to cut rates to boost growth. US Fed had cut rates by 0.50% on 03 March in a surprise move.