India’s bond yields see a rise, tracking US peers – Times of India

MUMBAI: Indian government bond yields are expected to be higher in early trade on Monday, tracking a similar move in the US Treasury yield, following the Federal Reserve Chair. Jerome Powell Indicated more rate hikes to reduce inflation.
A trader at a private bank said the benchmark 10-year government bond yield is likely to trade in the 7.20%-7.26% band. On Friday, the yield closed down seven basis points at 7.2173%.
“from the comment irrigated Very bullish, and even though the 10-year US yield has not shown any major reaction, the two-year yield is now approaching 3.50%, and this could lead to some selling locally today,” said the trader.
The 10-year US Treasury yield rose to 3.11% earlier on Monday, while the two-year yield hit its highest level in nearly 15 years after the Fed’s Powell reiterated that US central banks would raise interest rates to fight inflation. Will continue
“Higher interest rates, slower growth and softer labor market conditions will ease inflation, but they will also bring some pain to homes and businesses,” Powell said Friday at the Jackson Hole Central Banking Conference in Wyoming.
Markets are now pricing in a roughly 64.5% chance of a 75 basis point rate hike at the next Fed meeting in September.
Domestic sentiment is expected to remain cautious, as investors interpret bullish policy signals to set the tone for reserve Bank of India,
And, with global oil prices staying above $100 a barrel, concerns over inflation have fueled hopes of a rate hike.
India is a major importer of crude oil and higher prices are expected to increase domestic inflationary pressures. India’s consumer inflation has remained above 6% for seven consecutive months.

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