Bond yields fall as US data hints Fed may pause rate hikes

Indian government bond yields have fallen as inflation data in the US increased bets that the Federal Reserve would halt interest rate hikes. The decline in yields came following that of their US counterparts on Wednesday, with the yield on 10-year US benchmark bonds falling 8bps to 3.4420%. A dealer with a private bank said “a large section of the market was of a view that Fed will pause in June and inflation data has reinforced that. So, the benchmark bond yield may test 7% but don’t think it may go below that immediately.