Indian government bonds firm as oil prices fall, RBI awaited
Business
Indian government bonds are looking stronger this Wednesday, thanks to a sharp drop in global oil prices.
The yield on the key 6.94% 2036 bond is expected to stay steady between 6.80% and 6.83%.
All eyes are also on the Reserve Bank of India's policy update at 10am IST, where most expect interest rates to hold steady.
Brent drop eases India inflation worries
With Brent crude now below $80 per barrel after two days of big losses, India, a large importer of crude, gets some relief on inflation and its current account deficit.
This comes just as retail inflation ticked up to 4.38% in June, slightly above RBI's target.
The recent oil price dip could make it easier for the RBI to keep policy unchanged and manage inflation without any big surprises.