India bonds extend weekly slide; struggle to shake off RBI hike, hawkish stance shift

RBI OMO sale fears spur bond sell-off; 10-year G-Sec hits three year high

RBI's aggressive liquidity draining and sticky inflation push India 10-year bond yields to a three-year high around 7.30%.

India bonds extend weekly slide; struggle to shake off RBI hike, hawkish stance shift

Indian government bonds have faced a downturn for the eighth consecutive week, primarily influenced by soaring oil prices and a more aggressive stance from the central bank. The yield on benchmark bonds has surged, signaling a drop in investor confidence. Additionally, the Reserve Bank of India raised the repo rate to 5.50%, with economists anticipating further increments that may take it to at least 6.00%.