Indian government bonds gain as oil falls after Fed hike

Business Sep 17, 2026

Indian government bonds got a boost on September 17, 2026, thanks to falling oil prices right after the US Federal Reserve raised rates for the first time in over three years.

With more Saudi crude coming in through Oman, even though global oil is still pricey, bond yields slipped a bit, easing worries about the Reserve Bank of India (RBI) hiking rates soon.

Swap rates drop, RBI sells bonds

Lower oil prices helped overnight swap rates drop too, signaling a little relief in the market.

But with retail inflation still high and the RBI hinting at more rate hikes in its recent meetings, investors are staying alert.

Meanwhile, the RBI has been selling bonds to soak up extra cash from banks, a move that can impact interest rates and keep things steady on the economic front.