Indian bond yield remains stable even after rate cut by US Fed

Bonds

Indian bond yields remained stable on September 8 even after the rate cut by the US Federal Reserve. Today, 10-year benchmark bond 7.10 percent 2034 yield opened lower at 6.8088 percent, as against 6.8240 percent close on the previous trading session.

The US Federal Reserve on Thursday cut the key interest rates by another 25 basis points to 4.50-4.75 percent.

While addressing the media after the policy announcement, US Fed Chairman Jerome Powell said the US election will have no impact on the US Fed’s policy decisions. “The Committee (FOMC) decided to lower the target range for the federal funds rate by 1/4 percentage point to 4-1/2 to 4-3/4 percent," the US Fed’s Federal Open Market Committee (FOMC) said in the latest November 2024 policy statement.

On the US economy, the FOMC said recent indicators suggest that economic activity has continued to expand at a solid pace.