India's 10-year bond yields drop to 20-month low on US Fed rate cut hints

US Federal Reserve said it was ready to battle growing global and domestic economic risks with interest rate cuts

India's benchmark 10-year bond yields dropped to their lowest in 20 months on Thursday after the US Federal Reserve signalled possible interest rate cuts later this year, while buying from state-run banks also aided.

The benchmark 10-year bond yield was at 6.75 per cent, as of 0345 GMT, its lowest level since Oct. 17, 2017, and down 9 basis points from its previous close.

The US Federal Reserve on Wednesday said it was ready to battle growing global and domestic economic risks with interest rate cuts beginning as early as next month, as it took stock of rising trade tensions and growing concerns about weak inflation.