Bond Yields in India Creeping Back to 6% as RBI Goes Silent
Outside the Reserve Bank of India (RBI) building in Mumbai, India.
Photographer: Kanishka Sonthali/BloombergThis article is for subscribers only.
A conspicuous silence from the Reserve Bank of India regarding support for the nation’s bonds has left traders wondering whether the recent gains in yields is a new normal.
The central bank may be trying to increase the attraction of sovereign debt by letting yields rise, according to PNB Gilts Ltd. The benchmark 10-year bond yield advanced to 5.97% on Wednesday, the highest since May.