India T-bill yields rise to 18-month high as investors brace
Business
India's short-term borrowing just got a lot pricier.
Treasury bills for 182-day and 364-day were auctioned at yields of 6.29% and 6.49%, the highest in 18 months, and up sharply from last week.
Investors are clearly bracing for more RBI rate hikes as inflation worries grow.
RBI hikes unsettle markets
Premiums over the RBI's main rate have jumped to levels last seen in 2022, with experts like VRC Reddy noting that "hawkish" signals from the central bank and rising prices are making markets nervous.
The RBI hiked its key rate for the first time in nearly four years last week and shifted its stance, signaling more increases, so everyone's watching what happens next.