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.

Option (D) is correct because bond yields are influenced by global capital flows (US Fed actions), domestic monetary policy (RBI’s repo rate and OMOs), and macroeconomic indicators like inflation which determine the real rate of return. A tempting wrong choice like (a) might occur if a candidate fails to recognize that inflation and short-term rates are fundamental market drivers of bond pricing independent of direct central bank intervention. The core concept tested is the multi-dimensional factors—both global and domestic—that influence the pricing and yield of government securities.