Indian bond yields likely to fall today: Here's why
Indian bond yields are likely to fall because states have decided to borrow less money this quarter—₹2.82 trillion instead of the earlier ₹3.25 trillion.
With fewer bonds up for grabs and the Reserve Bank of India (RBI) staying supportive, experts say this could give the bond market a nice boost.
What to expect today?
The 10-year benchmark yield is expected to hover between 6.46% and 6.51% today, after closing at 6.5114%.
Some big government banks have increased their internal limits for buying more state bonds after talks with the RBI, which just kept its main rate steady at 5.50%, pointing to low inflation as a good sign for growth.
There's also some buzz about a possible rate cut in December, while global oil prices rose and US Treasury yields remained steady.