Inflation Angst Spreads to India Bonds as RBI Downplays Risk
- India’s bond yields rise most among Asian peers in July
- RBI meeting watched for signs of policy normalization
This article is for subscribers only.
India’s sovereign bond market is pricing in growing inflation risks, even as the central bank sees the price pressures as transient.
The yield on India’s benchmark 10-year bond jumped 16 basis points in July, the most among similar-tenor notes from other Asian sovereigns, as retail inflation remained persistently above the Reserve Bank of India’s 2%-6% target range.