From The Economic Times · Reuters · · 1m
India bonds drop as oil prices spike rate hike fears
India's bond yields rise as oil prices surge, fueling rate hike worries.
In brief
India's bond yields rise as oil prices surge, fueling rate hike worries. India's 10-year bond yield climbed for nine weeks, raising fears of a 50 bps rate hike by the RBI. Originally reported by The Economic Times.
India bonds give up gains
Indian government bonds ended lower as oil prices spiked and inflation fears rose.
Benchmark bond yield drops
The benchmark 6.94% 2036 bond yield closed at 7.3920% after falling from 7.3789% the previous session.
Oil prices spike
Brent crude hit $108 per barrel after rising to $110 on Friday, the highest since May.
Inflation concerns rise
India's September inflation accelerated to 5.54% and is expected to cross 6% in October.
RBI rate hike fears
Economists predict consumer inflation might exceed the RBI's upper tolerance band, prompting a 50 bps rate hike.
RBI's next move
Puneet Pal, head of fixed income at PGIM India Mutual Fund, expects a 50 bps rate hike by the RBI.
Here's the gist
India's 10-year bond yield climbed for nine weeks, raising fears of a 50 bps rate hike by the RBI.
