Indian 2036 bond yield holds at 7.44% amid oil, inflation
Indian government bonds barely budged Wednesday, even though oil prices are up and inflation worries are back in the spotlight.
The main 2036 bond yield hovered between 7.42% and 7.49%, settling at 7.44%.
Traders noticed yields holding below 7.50% for a second day, which led to some quick buying that kept things stable.
India faces $115 oil, rupee pressure
Oil sticking around $115 a barrel (thanks to supply jitters from Saudi Arabia) is tough for India since India imports so much of it: it means higher costs all around, more inflation, and possibly slower economic growth ahead.
On top of that, the rupee getting weaker against the dollar has people thinking the Reserve Bank of India might hike interest rates soon to keep prices in check.
Everyone is watching what happens next with global markets and central banks, since it could shape India's economic path this year.