Rupee, bonds hold steady after US Fed's expected move to hike rate

Globally, bond yields had risen steadily in recent past to price in four rate hikes in total

Bond yields in India have not shown any reaction to the US Federal Reserve’s move to hike the key policy rate by 25 basis points last night, as the hike was already expected and priced in.

The US Fed also indicated that there might be two more rate hikes by the end of calendar year, in line with market expectations.

The US Fed’s effective communication nixed the chances of volatility, but globally bond yields had risen steadily of late to price in four rate hikes in total. The US 10-year yield rose above 3 per cent in reaction to the rate hike,