Indian Government Bond Yields are influenced by which of the following?1.Actions of the United States Federal Reserve2.Actions of the Reserve bank of India3.Inflation and short-term interest ratesSelect the correct answer using the code given below

1. A

   1 and 2 only

   1 and 2 only. Inflation and short rates also move the G-sec curve.

2. B

   2 only

   2 only. Fed action and inflation are in the same yield story.

3. C

   3 only

   3 only. Under-counts policy rates at home and abroad.

4. D

   1, 2 and 3

   All three. Fed, RBI, and inflation/short rates all price Indian government bonds.

Summary. Official key is (d) 1, 2 and 3. Indian G-sec yields move with RBI policy, with US Fed spillovers, and with inflation and short-term rates. None of the three is idle.