World▼ Negative
Softer oil buoys India bonds after Fed hike
RBI moved higher.
· Economic Times Markets
Indian government bonds made a recovery on Thursday, moving past initial setbacks as falling oil prices lessened worries about a potential rate hike from the Reserve Bank of India. The key 6.94% 2036 bond yield ended the day slightly below Wednesday's mark. Overnight indexed swap rates also showed signs of recovery late in the trading session due to the ongoing drop in oil prices.
The analysis
RBI reported movement of 6.94%. Those are the figures as filed — what moves the price is how they sit against what the market already expected, not their absolute size.
Why it matters
- With RBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.
Market context
- The immediate tone of coverage reads negative.