India bonds to decline on elevated oil, hawkish RBI
MUMBAI: Indian government bonds are likely to weaken on Monday, as elevated oil prices stoke inflation worries, adding to pressures from a hawkish central bank and rate-hike expectations. The benchmark 6.94% 2036 bond yield may trade between 7.37% and 7.42%, according to a trader at a primary dealership, after closing at 7.3789% in the previous session. Bond yields rise when prices fall. Brent…
Mumbai, India is set to witness a decline in its government bonds on Monday. This downward trend is attributed to a combination of factors including elevated oil prices, hawkish central bank policies, and rate-hike expectations. The benchmark 6.94% 2036 bond yield is projected to fluctuate between 7.37% and 7.42%, following its previous session's close at 7.3789%.
Rising oil prices have exerted inflationary pressures on India, which could destabilize the local currency and affect the government's financial stability. The benchmark 6.94% 2036 bond yield may trade within the specified range due to these prevailing market conditions.
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