Propelled by fall in US peers, India’s 10-year bond yield hits 9-month low

U.S. bond yields fell further, with the 10-year yield declining to its lowest level in five weeks on Friday, after data showed employers added more jobs than anticipated in February, though the unemployment rate moved higher.

Non-farm payrolls increased by 275,000 jobs last month, above economists’ expectations of 200,000 jobs gains. The unemployment rate rose to 3.9 per cent in February after holding at 3.7% for three straight months.

The data comes after Fed Chair Jerome Powell said the U.S. central bank still expects to reduce rates later this year, strengthening bets that rate easing in the world’s largest economy will start before the end of the first half of 2024.

The odds for a rate cut in June now stand at around 75 per cent, according to the CME FedWatch tool.

Meanwhile, traders will also remain focused on inflation as India and the U.S. are due to announce February consumer price inflation data on Tuesday.

Inflation for the United States becomes more crucial as it will set the tone for the Fed’s March meeting and could further firm up expectations on rate cut timings.

India’s retail inflation is forecast to have edged down to a four-month low of 5.02 per cent in February, according to a Reuters poll.