Aggressive RBI measures hand India bonds a ninth weekly loss

Synopsis Indian government bonds have experienced ongoing losses for nine consecutive weeks due to RBI’s monetary tightening measures. The benchmark 6.94% 2036 bond yield has climbed over 62 basis points during this period, reflecting investor concerns. Additionally, the RBI’s commitment to support the rupee and manage liquidity has further dampened bond market sentiment. Market participants are wary of possible future actions regarding bond yields as the RBI addresses financial stability. Indian government bonds nursed losses for a ninth straight week, battered by the Reserve Bank of India’s rupee defence, which has sharpened its tightening bias, clouded the policy outlook and…