G-Sec yields rise as October inflation crosses 6%
In short
India’s government bond yields moved higher after October inflation crossed 6%. The benchmark 10-year yield rose 5 basis points to 7.30%, and markets were expecting the RBI to lift the repo rate by 25 basis points to 5.75%.
US yields also rose, adding to the pressure on bond markets.
What the reporting says
Benchmark government security yields rose after October inflation breached the 6% mark, while US yields also moved higher, according to a BusinessLine Money & Banking summary.
Why it matters
Benchmark government security yields hardened after October inflation breached 6%, with the 10-year yield rising 5 basis points to 7.30%. The BusinessLine summary also said US yields rose and markets expected the RBI to hike the repo rate by 25 basis points to 5.75%. The move matters for borrowers, bond investors and rate-sensitive markets because it points to tighter monetary-policy expectations.