India 10Y Yield Retreats From 3-Year Highs
The yield on India’s 10-year G-Sec eased to around 7.37%, retreating from three-year highs as a decline in US Treasury yields, driven by safe-haven demand amid a selloff in technology stocks, supported Indian government securities. The US 10-year Treasury yield fell to a three-week low of 5.11%, reversing its rise to 5.33% after stronger-than-expected September inflation data. However, expectations of further Reserve Bank of India rate hikes and tighter domestic liquidity continued to weigh on Indian yields. The RBI’s aggressive rupee defense has strengthened bets on faster monetary tightening, with markets increasingly pricing in a 50-basis-point hike in December. Persistent inflation, Brent crude above $100 per barrel, and foreign capital outflows have heightened these concerns, while RBI dollar sales risk draining banking-system liquidity and weakening demand for government securities.
37%, retreating from three-year highs as a decline in US Treasury yields, driven by safe-haven demand amid a selloff in technology stocks, supported Indian government securities. 33% after stronger-than-expected September inflation data. However, expectations of further Reserve Bank of India rate hikes and tighter domestic liquidity continued to weigh on Indian yields. The RBI’s aggressive rupee defense has strengthened bets on faster monetary tightening, with markets increasingly pricing in a 50-basis-point hike in December.
Persistent inflation, Brent crude above $100 per barrel, and foreign capital outflows have heightened these concerns, while RBI dollar sales risk draining banking-system liquidity and weakening demand for government securities.