Indian Bonds Pare Losses as Two-Year High Yields Attract Buyers
- RBI minutes showing hawkish tilt spooked market initially
- Rupee weakens beyond 65 per dollar first time since November
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India’s bonds pared losses as some investors bet that concerns about inflation accelerating, which pushed up yields to a two-year high, are overdone.
Benchmark 10-year yields rose to the highest since February 2016 after the minutes of the central bank’s policy meeting showed most of the six members of the monetary policy panel turned hawkish at the Feb. 6-7 review, even as they kept rates on hold. One member voted for a hike, while another gave up a call for a cut, dashing speculation the central bank would ease policy.