FX.co ★ India 10Y Yield Hits 3-Week High

India's 10-year government bond yield climbed beyond 6.5% on Monday, reaching a three-week high driven by positive sentiment surrounding the government's forthcoming reform initiatives. The winter session of parliament, commencing on December 1, is poised to address a comprehensive array of bills impacting sectors such as insurance and atomic energy. These measures aim to stimulate investment and expedite economic growth. Prime Minister Narendra Modi envisions elevating India to the status of a "developed country" by the year 2047, a goal necessitating an economic expansion of nearly 8%. This week's anticipation centers around the forthcoming Q3 GDP figures, anticipated to show a 7.3% growth. Despite this, recent data highlights challenges as significant US tariffs are beginning to impact the economy. October recorded an unprecedented trade deficit, coupled with a slowdown in November's economic activities, evidenced by the manufacturing sector hitting its lowest point since May and a deceleration in service sector expansion. Additionally, the ongoing stagnation in US-India trade negotiations has affected market sentiment, curtailing policy measures that could alleviate the trade deficit and bolster diminished portfolio investments.