Indian Government Bonds Inch Lower Ahead of Anticipated RBI Rate Hike
· Business · Economic Times, Reuters, Indian Express
Indian government bond traders pared positions early Wednesday as rising US Treasury yields and elevated oil prices added pressure ahead of a Reserve Bank of India policy decision. The benchmark 6.94% 2036 bond yield rose 2 basis points to 7.2110% ahead of the central bank's rate announcement at 10:00 a.m. Two-thirds of economists surveyed by Reuters expect a 25-basis-point interest rate increase, which would mark the RBI's first hike since February 2023. The shift follows accelerated inflation figures in August alongside a challenging global environment featuring US 10-year Treasury yields trading above 7.30% and Brent crude remaining above $101.59 a barrel.
Why it matters
A potential interest rate hike by the RBI will influence borrowing costs, liquidity, and financial market expectations across India.
Read the original report — Economic Times
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