Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve Bank of India 3. Inflation and short-term interest rates Select the correct answer using the code given below.

Options

1. 1 and 2 only
2. 2 only
3. 3 only
4. 1, 2 and 3

Correct Answer

1, 2 and 3

Explanation

Bond yields respond to monetary policies of both RBI and major global central banks like the US Fed, as well as domestic inflation and interest rate trends.

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