🚨 The U.S. Bond Yield Drop
A Game Changer
U.S. 10-year yields fell from 4.8% to 4.02%, saving $300B on a $37T debt! Each 0.01% drop saves $37B. With $9T to renew, yields may hit 3.02%
could this spark a shift to markets like India? 🌍 🧵👇
@rishibagree
A Game Changer
U.S. 10-year yields fell from 4.8% to 4.02%, saving $300B on a $37T debt! Each 0.01% drop saves $37B. With $9T to renew, yields may hit 3.02%
could this spark a shift to markets like India? 🌍 🧵👇
@rishibagree
📈
India joins the FTSE Russell index in Sep 2025, expecting $20-25B in inflows (9.35% of a $4.7T index).
At 6.8% yield vs. USA's 4.02%, 2.78% gap is huge!
India joins the FTSE Russell index in Sep 2025, expecting $20-25B in inflows (9.35% of a $4.7T index).
At 6.8% yield vs. USA's 4.02%, 2.78% gap is huge!
🙅Why India Lags Behind USA
Challenges:
Rupee at 87 vs USD hedging costs 4%, cutting yield to 2.46% (vs. U.S. 4.02%).
Liquidity: India’s ₹50K Cr/day vs. U.S.’s $600B/day.
BBB- rating vs. U.S.’s AAA.
Challenges:
Rupee at 87 vs USD hedging costs 4%, cutting yield to 2.46% (vs. U.S. 4.02%).
Liquidity: India’s ₹50K Cr/day vs. U.S.’s $600B/day.
BBB- rating vs. U.S.’s AAA.
Yield Spread
A Golden Opportunity?
U.S. yields at 3.02% widen the spread to 3.78%. But rupee risk hurts: unhedged yield drops to 1.46%.
Hedged, it’s 2.46% competitive if U.S. hits 3.02%. India must act fast! ⚖️
A Golden Opportunity?
U.S. yields at 3.02% widen the spread to 3.78%. But rupee risk hurts: unhedged yield drops to 1.46%.
Hedged, it’s 2.46% competitive if U.S. hits 3.02%. India must act fast! ⚖️
How India Can Win
1️⃣ Trade in rupees with Russia, UAE.
2️⃣ Stabilize rupee at 86-88 with $704B reserves.
3️⃣ Boost liquidity via repo market.
4️⃣ Issue green bonds for $35T ESG market.
@nsitharaman @RBI
1️⃣ Trade in rupees with Russia, UAE.
2️⃣ Stabilize rupee at 86-88 with $704B reserves.
3️⃣ Boost liquidity via repo market.
4️⃣ Issue green bonds for $35T ESG market.
@nsitharaman @RBI
A stronger bond market saves ₹72,500 Cr/year that’s 10 new IITs or 5,000 km of highways! 🚀
Clock is ticking to fuel India’s $5T dream by 2027
your support can make India a financial hub!
Clock is ticking to fuel India’s $5T dream by 2027
your support can make India a financial hub!
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