India bond yields to track rupee’s moves for direction
Live MintBy Dharamraj Dhutia MUMBAI, Jan 14 - Indian government bond yields are expected to be largely unchanged in early deals on Tuesday as it awaits the direction of the local currency, while U.S. yields remain elevated on dwindling bets of a rate cut in the world's largest economy. The Indian rupee ended at a fresh record low of 86.5750 and posted its worst single-day decline in over two years on Monday, bogged down by a surge in the U.S. dollar and likely outflows from local equities. U.S. Treasury yields remain elevated, with the 10-year yield hovering around its highest level since November 2023 during Asia trade in Tuesday, after U.S. jobs growth unexpectedly accelerated in December and the unemployment rate fell below economists' predictions. U.S. yields have been on a tear on concerns that the incoming Donald Trump administration's policies could reignite inflation, leading to fewer rate cuts.