Indian bond markets slip as RBI hints at rate hikes
Business
Indian bond markets slipped on Thursday after the Reserve Bank of India (RBI) signaled it might hike interest rates if inflation keeps rising.
Add in climbing global oil prices, and investors got jittery, leading to a quick selloff as everyone worried about borrowing costs going up.
Main 2036 bond at 6.8709%
Bond yields jumped to their highest since June 15, with the main 2036 bond hitting 6.8709%.
Rising oil prices (Brent crude hit $94 a barrel) are especially tough for India, which imports most of its oil.
With July's retail inflation already above the RBI's target at 4.45%, there is extra pressure on both government finances and everyday prices.