Indian government bonds fall as oil jumps, Sanjay Malhotra signals
Business
Indian government bonds dropped on Wednesday after oil prices shot up and RBI Governor Sanjay Malhotra signaled a firm stance on interest rates.
The benchmark bond yield climbed to 7.3886%, reflecting worries about rising costs and the central bank's focus on keeping inflation in check.
Oil at $107 pressures India's inflation
Oil prices surged to around $107 per barrel thanks to tensions in the Middle East, weighing heavily on oil-import-dependent India, pressuring inflation and the currency.
With consumer inflation already at 5.54% in September and expected to cross the central bank's upper tolerance band in October, there's talk of another rate hike by the RBI.
All eyes are now on global trends and what the US Federal Reserve does next.