{
  "id": 2065487,
  "title": "Selloff likely for India bonds on RBI's rate hike mention in policy minutes",
  "url": "https://urgent.news/2026/08/20/selloff-likely-for-india-bonds-on-rbis-rate-hike-mention-in-policy",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-20T03:17:08.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/selloff-likely-for-india-bonds-on-rbis-rate-hike-mention-in-policy-minutes/article71367639.ece"
  },
  "original_language": "en",
  "account": "Indian government bonds are expected to experience strong selling pressure at the start of the trading week following minutes from the central bank's latest monetary policy meeting. These minutes suggest the possibility of rate hikes, even though interest rates remain unchanged. The yield on the benchmark 6.94% 2036 bond is anticipated to trade between 6.80% and 6.85%, down from its closing price of 6.8170% on Wednesday. Analysts predict a realistic chance of a rising 10-year benchmark bond yield, but emphasize the need to verify if the yield surpasses the psychological level of 6.85% on a consistent basis. The monetary panel unanimously decided to maintain the policy repo rate at 5.25% on August 5, keeping its stance neutral. Although there are no clear signs of inflation becoming widespread, RBI Governor Sanjay Malhotra stated that headline inflation is normalizing after witnessing benign levels. RBI Deputy Governor Poonam Gupta indicated no further scope for easing policy and suggested a potential rate hike during the fiscal year. Meanwhile, the global oil price forward contract remains around $92 per barrel, fueling inflation concerns and prompting markets to anticipate increased borrowing costs. For India, a rising crude oil price poses risks to the rupee, the nation's inflation trajectory, and current account and fiscal metrics. The weakening sentiment since the central bank closed its discounted swap facility for diaspora deposits has also impacted market sentiment. India's overnight indexed swap rates are expected to rise, with the one-year swap rate ending at 5.8075% and the two-year rate closing at 6.0475%. The five-year liquid rate settled higher at 6.3975%.",
  "summary": "The yield on the benchmark 6.94% 2036 bond is expected to trade between 6.80% and 6.85%, private bank trader says",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Hindu BusinessLine",
        "title": "RBI's surprisingly hawkish tone in policy minutes weighs on Indian bonds",
        "url": "https://urgent.news/2026/08/20/rbis-surprisingly-hawkish-tone-in-policy-minutes-weighs-on-indian",
        "published": "2026-08-20T05:29:29.000Z"
      },
      {
        "outlet": "Business Recorder",
        "title": "RBI's surprisingly hawkish tone in policy minutes weighs on Indian bonds",
        "url": "https://urgent.news/2026/08/20/rbis-surprisingly-hawkish-tone-in-policy-minutes-weighs-on-indian-2089580",
        "published": "2026-08-20T06:09:54.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}