Here Are 4 Upcoming Events That Will Impact Yields On Debt Market

The benchmark 10-year government bond yields surged after the 2024 Lok Sabha election results indicated that the Bharatiya Janata Party (BJP) will be able to form the government with support of its National Democratic Alliance (NDA) alliance partners.Though the debt markets have recovered from a 9 basis points (bps) yield surge on 10-year government bonds to settle at 7.01 per cent yield on June 7, 2024, several events, such as the upcoming budget session and JP Morgan Bond Index Fund inclusion can impact yields.Venkatakrishnan Srinivasan, founder of Rockfort Fincap LLP, says: “A decisive mandate in Lok Sabha election results might have lowered yields due to expectations of policy continuity and economic reforms. Conversely, a fragmented mandate could introduce uncertainty, potentially increasing yields The Budget Session will provide clarity on fiscal policies and government borrowing, and influence market sentiment. The US Federal Reserve meeting and anticipated inflows from JP Morgan Bond Index inclusion, alongside the movement in US Treasury yields, will have significant implications for capital flows and yield dynamics.”So, here are four key events that retail investors should follow, and understand their potential impacts to better navigate the upcoming period by adjusting investment strategies accordingly.Also read: Govt Bond Yields Inch Down After Lok Sabha Result Surge

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