RBI ends demand facility, Indian government bonds hit worst week
Business
Indian government bonds took a big hit, their worst week of fiscal 2027, after the RBI unexpectedly said it would shut a facility that helped boost demand, especially for five-year bonds.
This sudden move left the market shaken, with investors pulling back.
Oil up, yields climb, RBI hawkish
Rising global oil prices pushed inflation worries higher, sending bond yields up to a two-month high.
On top of that, the RBI's recent meeting hints it is not easing up on interest rates anytime soon, making markets nervous about possible rate hikes ahead.