Indian benchmark 2035 bond yield seen between 6.90% and 6.95%
Indian government bonds are expected to open lower today, thanks to all the drama in global oil markets.
The benchmark 2035-bond yield is likely to hover between 6.90% and 6.95%, after its sharpest drop in almost four years on Wednesday.
The main reason? Uncertainty around the U.S.-Iran ceasefire and rising tensions in the Strait of Hormuz, which is a key route for world oil supplies.
Reserve Bank of India holds rates
Since India imports nearly 90% of its oil, any shake-up in global supply hits home fast: fuel prices can jump and inflation risks go up.
The Reserve Bank of India just kept interest rates steady but warned that growth could slow and inflation might rise if Middle East tensions continue.
Still, HSBC thinks RBI will hold rates where they are until at least 2026, sticking with its flexible approach to inflation.