by Martin Armstrong
The yield on the Indian government’s 10-year bond slumped nearly 11 basis points on Monday when it hit an over 11-year low as a decline in global crude oil prices eased concerns over inflation and fiscal deficit. Rising expectations of a rate cut by the Reserve Bank of India (RBI) following a rout in global equity markets because of escalating cases of COVID-19, or novel coronavirus, also kept bond yields under pressure. The 10-year bond yield hit 6.076% — a level last seen on March 3, 2009. On Friday, the yield was at 6.183% at close.
According to IMF, the economic impact of COVID-19 could easily plunge the global economy into one. If this happens, this may lead to a China-centric global recession in how it started, how it would progress, and how it may end.