Indian government bonds steady as traders await inflation data
Indian government bonds were pretty steady on Wednesday morning, remaining steady after Tuesday's selloff.
Right now, traders are mainly focused on upcoming inflation numbers from both the US and India—since these could shape what central banks do with interest rates next.
The 10-year bond yield nudged up slightly to 6.4978% by mid-morning.
What to expect from upcoming inflation data
Earlier this week, Finance Minister Nirmala Sitharaman reassured everyone that the government would stick to its fiscal deficit goals without changing its borrowing plans, which gave investors a confidence boost.
But when yields failed to fall below the key 6.43% mark, some folks cashed in their profits.
Looking ahead, a Reuters poll suggests India's August inflation might rise to 2.1%, mostly because of pricier food and last year's low base numbers.
Meanwhile, global markets are watching for a possible US Fed rate cut soon—so all eyes are on these data releases to figure out what happens next with investments and borrowing costs.