India's 10-year bond yield hits 4-week high
India's 10-year government bond yield just hit a four-week high at 6.55%, thanks to a shake-up in the government's borrowing plan for October-March.
With the Reserve Bank of India's big policy decision coming up this Wednesday, investors are playing it safe and watching closely.
Why the sudden spike?
The government is now planning to borrow ₹6.77 trillion (about $76 billion) by cutting back on super-long bonds and focusing more on the popular 10-year ones—over 28% of total borrowing will be through these.
Weekly auctions for these bonds are also getting bumped up, which means more supply and higher yields (aka, lower prices).
What to expect from RBI on Wednesday
Most traders think RBI will keep interest rates steady, but some are hoping for a surprise cut or at least a hint that one could come soon.
Short-term swap rates have ticked up too, showing everyone's feeling pretty cautious ahead of Wednesday's announcement.