"The sudden drop in Treasury yields in November has led to similar movement in Indian bond yields, though the magnitude is not similar," said VRC Reddy, treasury head at Karur Vysya Bank.
In the US, the investors will look out for the "Beige Book", the Fed s compendium of reports about the economy, on Wednesday. The personal consumption expenditure index data for October - the Fed s preferred inflation gauge - is slated to be released on Thursday. While traders have priced in the chances of a pause in rate hikes in December, they see a nearly 50% chance of at least one 25-basis point rate cut in May 2024, according to the CME FedWatch Tool.
US. stocks were subdued at open on Monday, ahead of a key inflation reading and commentary from Federal Reserve policymakers later in the week, while retailers were in focus as holiday shopping picked up steam with Cyber Monday deals. The Dow Jones Industrial Average fell 13.71 points, or 0.04%, at the open to 35,376.44.
The dollar index, which measures the currency against a basket of peers, last stood at 104.13 in the Asian morning, just off Tuesday s two-month low of 103.98.