New Delhi, Sep 17 || Benchmark Indian bond yields are expected to ease slightly over the next three months, driven by favourable inflation data and stable oil prices, a report said on Wednesday.
The 10-year government bond yield, which stood at 6.59 per cent on August 31, is expected to inch down to the 6.42 per cent-6.52 per cent range by the end of September and to 6.38 per cent-6.48 per cent by November end, said the report from research firm Crisil Intelligence.
State development loan yields are expected to ease from 7.23 per cent to the 7.15 per cent-7.25 per cent range by November, while 10-year corporate bond yields may fall from 7.19 per cent to the 7.08 per cent-7.18 per cent range.
Crisil reported that benign oil prices are offsetting the effects of geopolitical risks and a slowdown in global growth. Key factors influencing yields are the upcoming US Federal Open Market Committee decision, domestic market liquidity averaging Rs 2.84 lakh crore in August, ongoing US-India trade negotiations, and volatile foreign capital inflows.