Some expect a slightly deeper cycle, with expectations of a terminal rate at 5% by December 2025 as the Reserve Bank of India surprised the market with a change in its stance to accommodative from neutral , along with a downgrade in growth forecasts, "decisive improvement" in the inflation outlook and commitment to surplus liquidity.

Private sector companies have seen their spreads widen, whereas government-owned banks and state-owned companies have largely remained steady, with yields on their dollar bonds remaining flat over the past week following the tariff announcement. However, relief came from tariff pause for some issuers like Biocon Biologics 6.67% due 2029 rising 4 points today, though still lower by over 8 points from start of the month.

The selloff is the latest sign of the power of government bond markets to act as a restraint on policymakers, while talk of a return of so-called bond vigilantes has risen in recent years.

Gold prices rose as investors sought safety amid President Trump s tariff escalation on China, despite his decision to ease duties on other countries.

Donald Trump s latest shift on Nippon Steel s $14 billion bid for U.S. Steel sent shares of the 124-year-old American company down 7% on Thursday, after Trump said a day earlier that he does not want the steel producer to "go to Japan."

Gold prices jumped nearly 3% to an all-time high on Thursday, as a drop in the dollar and an escalating trade war between the U.S. and China drove investors towards the safe-haven allure of the precious metal.

Wall Street s main indexes fell on Thursday on concerns over the impact of high tariffs on global economy, with stocks pulling back from the sharp gains a day ago when U.S. President Donald Trump moved to temporarily lower the levies on some countries.

The U.S. dollar weakened against the yen, Swiss franc and euro on Thursday but also against more risk sensitive currencies such as the Australian dollar, as markets digested President Donald Trump s dramatic reversal on tariffs.

Oil prices fell more than $2 per barrel on Thursday, wiping away the prior session s rally, as investors reassessed the details of a planned pause in sweeping U.S. tariffs and focus shifted to a deepening trade war between Washington and Beijing.

Former U.S. Treasury Secretary Janet Yellen said on Thursday that the threat of financial instability prompted by falling prices for U.S. Treasury debt in recent days likely influenced President Donald Trump s decision to reverse course and partially pause his tariff campaign.