US Treasuries rally as oil cools and confidence in Fed’s Warsh grows
· Business · Economic Times, LiveMint
US Treasury yields fell across maturities on Thursday, with the 10-year yield dropping eight basis points to 4.95% after snapping an eight-day rise. Oil prices retreated, easing pressure on global debt markets after the Federal Reserve raised its benchmark rate by 25 basis points to 3.75%-4%. Investors priced in at least one more rate hike this year, with Fed Chair Kevin Warsh stressing the fight against inflation tail risk. The Fed’s preferred inflation gauge stood at 3.7% in July, well above its 2% long-term target.
Why it matters
Indian investors with exposure to dollar-denominated assets face short-term volatility as US bond yields shift, while a stronger dollar could raise India’s external borrowing costs and impact rupee stability.
Read the original report — Economic Times
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