Indian Bond Yields Rise Amid Global Debt Selloff
· Business · Economic Times, Bloomberg
Indian government bonds declined on Tuesday as the market tracked a global debt selloff driven by rising oil prices and inflation concerns. The benchmark 6.94% 2036 bond yield settled at 6.9581%, up from 6.9452% on Monday, after hitting its highest intraday level since June 11. Traders have increased bets on potential interest rate hikes by the Reserve Bank of India, with overnight index swaps now pricing in at least three hikes over the next year. While foreign investors turned net sellers of Indian bonds in August, local state-run banks provided some support by buying on dips. Brent crude futures remained elevated near $92 per barrel, fueling further inflationary pressure.
Why it matters
Rising bond yields and inflation fears could lead to higher borrowing costs for the Indian government and businesses, potentially impacting the broader economic growth trajectory.
Read the original report — Economic Times
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