The Budget, the Parliament and the Reserve Bank's latest policies have put a lot of problems and uncertainties before India's financial markets, more so, its bond and forex market.

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Hitendra Dave, Head of Global Banking & Markets at HSBC India, talks about the US yields and factors impacting them. In an interview with CNBC-TV18, Dave said, "The US being the mother market for all fixed income markets or actually all markets global, if their yields go up then all bond markets globally tend to have the same direction."

"You have a new President who is talking about a very large stimulus program, there is a global reflation trade, people are talking about commodities being in super cycle, and stock markets are at an all-time high. So, you can understand why yields have gone up there."

"Our own view is actually for yields to trend back lower as we move forward in time. Our global view is that yields actually soften as the year progresses. Our base case call for US 10-Year yield is below 1 percent," he added.

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(Edited by : Priyanka Rathi)

First Published:Feb 17, 2021 12:06 PM IST