Indian government bond yields fall after softer US inflation data
Indian government bonds are having a good week. Yields have dropped for the second day in a row, mainly because US Treasury yields fell after softer inflation data.
This has eased worries about more US rate hikes, which is good news for markets like India.
The benchmark 2036 bond yield slipped to 6.7436%, showing investors feel a bit more relaxed.
Bond inflows ease Indian rate concerns
Big buyers like state-run banks have snapped up ₹156 billion in bonds over just three sessions, giving the market extra support.
Foreign investors are also jumping in, putting over $4.2 billion into Fully Accessible Route bonds since June as India gears up to join Bloomberg's Global Aggregate Index.
Plus, with oil prices dropping below $85 a barrel and analysts predicting lower inflation ahead, things look pretty steady for now on the interest rate front.