Bonds Slump in India After RBI Surprises With Hawkish Minutes
- Rupee weakens to its lowest since March 2017 amid outflows
- RBI minutes seen bringing forward rate-hike expectations
This article is for subscribers only.
Indian bonds tumbled as unexpectedly hawkish central bank minutes added to the pressure of higher oil prices, boosting bets policy makers will raise interest rates. The rupee fell to its weakest in more than a year.
The nation’s 10-year yield closed nine basis points higher at 7.72 percent in Mumbai, after jumping as much as 17 basis points earlier. It climbed 29 basis points this week. The rupee fell past 66 per dollar to the lowest level since March 2017, as foreign funds pared holdings of local-currency debt for a fifth day on Thursday.