Current Affairs · Macroeconomics
Despite periodic policy rate reductions, which macroeconomic factor primarily causes India's 10-year government bond yields to experience upward pressure?
- 1Continuous steep decline in long-term domestic inflationary expectations
- 2High fiscal deficit concerns and large market borrowing requirements✓
- 3Persistent strengthening of the Indian Rupee against the US Dollar
- 4Lower demand for G-Secs due to excess banking liquidity
Correct answer
High fiscal deficit concerns and large market borrowing requirements
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