Indian bonds gain as RBI trims FY27 inflation to 5%
Business
Indian bonds started Thursday on a positive note, thanks to falling crude oil prices and the RBI trimming its inflation forecast for FY27 from 5.1% to 5%.
The yield on the key 10-year bond dropped slightly to 6.7680%, signaling better market vibes.
RBI holds rates at 5.25%
The RBI kept interest rates steady at 5.25%, which reassured investors.
Plus, global oil prices dipped after investors assessed the possibility of an Iran-Oman deal, easing energy cost worries.
On top of that, chances of a US Fed rate hike in September have gone down, from 70% to 55%, so there's less fear of sudden policy changes at home.
All these factors together are making Indian bonds look a bit more attractive right now.