Indian bond yields rise as Fed cuts rates cautiously
India's 10-year government bond yield ticked up to 6.50% on Thursday, reacting to the US Federal Reserve's first rate cut since December 2024—but with a cautious outlook from Fed Chair Jerome Powell.
Higher yields mean it'll cost more for the government
Higher yields mean it'll cost more for the government (and, eventually, everyone else) to borrow money.
If you're into investing or just tracking the economy, this also means lower returns on existing Indian debt.
Plus, a big ₹30,000 crore government debt sale is happening Friday, which could push yields even higher.
This uncertainty has sent both US and Indian bond yields up
The Fed says more US rate cuts might come in 2025 but isn't making promises—citing a risk-management approach and a meeting-by-meeting situation.
This uncertainty has sent both US and Indian bond yields up.
Even short-term rates in India are climbing as markets brace for more government borrowing ahead.