From The Economic Times · Reuters · · 1m 10s
Indian bonds steady ahead of RBI policy
Indian government bonds hold steady as RBI policy decision looms.
In brief
Indian government bonds hold steady as RBI policy decision looms. Indian government bonds remain stable ahead of RBI's potential rate hike this week, with yields at 7.2127% for the 6.94% 2036 bond. Originally reported by The Economic Times.
Indian bonds steady
Indian government bonds held steady early Monday as traders stayed sidelined ahead of the Reserve Bank of India's policy verdict this week.
Yield at 7.2127%
The benchmark 6.94% 2036 bond yield was perched at 7.2127% as of 10:25 a.m. IST, little changed from Thursday's close.
RBI policy decision
Wednesday's RBI decision is the immediate catalyst, with markets pricing in the central bank's first rate hike since 2023.
Global factors
Amid surging global yields, Brent crude above $100, and policy tightening by major central banks.
State borrowing program
States plans to raise 3.61 trillion rupees ($37.48 billion) through bonds in October-December, above market estimates.
Market reaction
The heavy supply of 10-30 year SDLs, alongside elevated long-end government bond issuance, is likely to keep the term premium under pressure.
The headline
Indian government bonds remain stable ahead of RBI's potential rate hike this week, with yields at 7.2127% for the 6.94% 2036 bond.
