Indian government bond yields dip ahead of RBI policy update
Business
Indian government bonds inched up on Tuesday, with the main 2036 bond yield dipping a bit as traders waited for the Reserve Bank of India's big policy update.
But with global oil prices climbing past $85 a barrel, markets stayed cautious.
Markets expect steady RBI rates
Most expect the RBI to keep interest rates steady, but traders're really paying attention to any hints about future economic plans or changes in how much cash is floating around.
Right now, there's a big liquidity surplus (₹2.44 trillion), thanks to recent government spending and overseas deposits. This has made short-term borrowing cheaper for states.
Still, those rising oil prices are adding some uncertainty to what happens next.