Government bond yields: Bank of Baroda report pegs 10Y in 6.50-6.60% range

Bank of Baroda expects India’s 10-year government bond yield to stay between 6.50 and 6.60 percent in September. The upcoming borrowing calendar is a key factor. A widening interest rate gap with the US supports this. The US Federal Reserve might cut rates, but the Reserve Bank of India is likely to maintain its stance.