India Bonds End Higher Capped By Rate Hike

Economic Times Markets · stocks

Indian government bonds closed slightly higher on Monday, driven by strong demand at the central bank's debt auction. However, gains were limited by rising U.S. Treasury yields and increasing expectations of a Reserve Bank of India rate hike next month. The RBI sold bonds worth 250 billion rupees, with yields below market estimates. Bets on further liquidity withdrawal and a repo rate hike on October 7 are capping any significant rally in bond prices.