Why are the bond yields in India shooting up so rapidly and what does that mean?
Answer
Answer
India's 10-year bond yield scaled above a 2-year high of 6.55% on 06th January 2022. This in the aftermath of the highly hawkish stance of the US Fed. Post the Fed minutes it looked like rate hikes would happen sooner and the Fed will also winddown its $9 trillion bond book. Now, all eyes will be on the Feb-21 policy of the RBI which will be significant to check how much hawkish the central bank could get.