From The Economic Times · Reuters · · 1m 10s
India Bonds Drop as Oil Prices Press
High oil prices push Indian government bonds lower, raising interest rate expectations.
In brief
High oil prices push Indian government bonds lower, raising interest rate expectations. Indian government bonds fell due to high oil prices and inflation concerns, with the Reserve Bank of India expected to hike interest rates. Originally reported by The Economic Times.
Indian government bonds end lower
Indian government bonds ended lower on Monday, giving up early gains as persistently high oil prices rattled sentiment and pressured the rupee.
Rupee weakens for third day
The rupee weakened for a third straight day, falling 0.3% to 95.1850 per dollar.
Bonds yield at 7.4826%
The 6.94% 2036 bond yield ended 1 basis point above Friday's close at 7.4826%.
RBI raises inflation forecast
The Reserve Bank of India raised its inflation forecast, anticipating a peak of 6% in consumer prices.
RBI expected to hike rates
India's central bank is expected to consider interest rate hikes to stabilize the currency amidst inflation concerns.
Yes Bank expects 50 bps hikes
Yes Bank expects another 50 basis points of rate hikes, split into 25-basis-point moves in December and February.
The short version
Indian government bonds fell due to high oil prices and inflation concerns, with the Reserve Bank of India expected to hike interest rates.
