Indian Bonds Benefit from Ceasefire and Steady Policy Rates
Indian bond yields dropped by nearly 0.15% after a conditional ceasefire in West Asia and the Reserve Bank of India's decision to maintain a steady policy rate. The Brent crude oil price drop improved market sentiment, reducing risks of imported inflation. The central bank projects bond yields to be around 7% for FY27.
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- India
Indian bond yields fell nearly 0.15% on Wednesday. The decrease was attributed to a conditional ceasefire in the West Asia conflict and the RBI's decision to maintain policy rates without change.
According to the Clearing Corporation of India, the 10-year benchmark bond yield closed at 6.8984%, down from 7.0443% the previous day.
Meanwhile, the RBI's monetary policy report forecasts 10-year bond yield to be approximately 7% for FY27. The easing of Brent crude oil prices, following the ceasefire, also contributed to the positive sentiment among bond traders.
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