Hawkish Fed Drags India Bonds Down
Indian government bonds fell sharply due to U.S. Federal Reserve Chair Jerome Powell's comments reducing expectations for a December rate cut. This led to a surge in U.S. Treasury yields, impacting Indian bond prices and pushing the 10-year note yield higher.
The Indian bond market experienced a significant downturn following comments by U.S. Federal Reserve Chair Jerome Powell, which diminished hopes for a December rate cut. This shift in global market sentiment led to an increase in U.S. Treasury yields, subsequently affecting Indian bond prices. The benchmark 10-year Indian government bond yield rose as a result. Investors are now awaiting the Reserve Bank of India's bond sale for further market direction. The global economic environment, influenced by the Fed's actions, continues to shape India's financial markets.
