Oil Prices and RBI Comments Weigh on Indian Bonds
India’s benchmark 2036 bond yield rose as oil climbed and traders assessed the central bank’s latest comments and rate hike.
Key takeaways
- The 2036 bond yield reached 7.3886% at 9:45 a.m. IST on Wednesday.
- Brent crude traded around $107 per barrel in Asian hours.
India’s benchmark 6.94% 2036 bond yield rose to 7.3886% by 9:45 a.m. IST on Wednesday, from Tuesday’s close of 7.3655%. The yield earlier reached 7.4112%, its highest since March 2023.
Higher oil prices and comments from Reserve Bank of India Governor Sanjay Malhotra added pressure, Reuters reported. Brent crude traded around $107 per barrel in Asian hours amid supply concerns linked to fighting between Yemen’s Iran-allied Houthis and Saudi Arabia.
The yield has risen 20 basis points since the RBI raised its policy rate to 5.50% last week and shifted to a stance of calibrated tightening. Traders were also watching for U.S. inflation data later Wednesday for clues on the Federal Reserve’s rate path.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
