RBI's bond purchase exclusion and rate cycle end speculation impact Indian bond market.
Summary
Indian government bonds stabilized after the Reserve Bank of India (RBI) excluded the 10-year benchmark from its bond purchases, causing yields to increase. Market sentiment suggests the RBI's rate easing cycle is concluding, and traders are awaiting the U.S. Federal Reserve's policy announcement.
Key Points
- Indian government bonds showed stability after a decline.
- RBI excluded the key 10-year benchmark bond from its purchase.
- Increased bond yields were observed.
- Market anticipates the end of RBI's rate easing cycle.
- Traders are monitoring the U.S. Federal Reserve's policy announcement.
Full Article
Indian government bonds found stability Tuesday after a sharp decline, following the central bank's decision to exclude the key 10-year benchmark from its bond purchases. This move, coupled with market sentiment that the RBI's rate easing cycle is nearing its end, has led to increased yields. Traders are also watching the U.S. Federal Reserve's upcoming policy announcement.