MUMBAI: India’s benchmark 10-year bond yield rose to its highest in additional than two weeks on Wednesday afternoon as traders speculated on the potential of an off-cycle fee enhance by the Reserve Financial institution of India.
The central financial institution mentioned in a tweet, governor Shaktikanta Das, might be making an announcement at 2 p.m. native time on Wednesday.
The benchmark 10-year bond yield was buying and selling at 7.19% by 0743 GMT, after having touched 7.21%, its highest since April 18. The yield closed at 7.12% on Monday. Monetary markets have been closed on Tuesday.
“There’s numerous hypothesis. A fee enhance might be very uncommon contemplating the central financial institution has mentioned they do not wish to shock markets however clearly there are expectations for a hike being priced in,” a senior dealer at a overseas financial institution mentioned.
The partially convertible rupee was buying and selling at 76.44/45 per greenback in contrast with its shut of 76.5150. Each the primary share indexes and have been down round 1.1%.
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