India’s Bonds Drop as Rate Increase Exceeds Analysts’ Forecast
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India’s government bonds declined after the central bank raised interest rates by half a percentage point.
Yields climbed to the highest level in more than three months and the one-year swap rate jumped to a 30-month high as the Reserve Bank of India lifted the repurchase rate to 7.25 percent, more than most analysts surveyed by Bloomberg had forecast. Inflation may stay around 9 percent until September because of higher fuel prices, according to a central bank statement after the decision.