Brent crude rebound halts India bond rally, 2036 yield 7.1710%
India's government bond rally just hit the brakes, thanks to a spike in global oil prices.
As Brent crude fell to $93.40 a barrel in Asian trade before rebounding about $3 to $96, mostly because of tensions between the US Israel, and Iran, investors started locking in profits.
This pushed the benchmark 2036 bond yield back up to 7.1710%, after it briefly dipped lower.
India CPI seen 6.1%, swaps falling
The earlier bond rally was helped by falling oil prices and a US Treasury rally, but now everyone's watching for new inflation data.
Experts expect India's headline inflation (CPI) to jump from 5.5% in September to 6.1% in October, which could shape what the Reserve Bank of India does next on interest rates.
Meanwhile, swap rates are dropping, a sign that traders don't think more rate hikes are coming soon.