Market move▼ Bearish for Indian equities
Rate cut cycle near turning point. What lies ahead for Indian bonds?
The brief
- The RBI is expected to signal monetary tightening at its October policy meeting
- Stronger growth, rising oil prices and elevated US Treasury yields are driving expectations
- Tighter policy could pressure bond prices and rate-sensitive Indian banks and companies
- After Sept, bond yields to peak in Oct too? Experts decode future of Indian bond market; RBI's next move holds key
- Jefferies puts 25% of sovereign bond portfolio in Indian 15-year debt at 7.38% yield
- Rising gilt yields attract retail investors hunting for tax-efficient assets
- Market crash wipes out Rs 26 lakh cr in 8 weeks! Why soaring bond yields may hurt Sensex, Nifty more than elevated oil prices
- 10-year bond yield breaches 7.20%; hits 2.5-year high
RBI rate-hike outlook
Economists and research firms increasingly expect RBI rate hikes, with forecasts ranging from 50 bps in FY27 to 100 bps through H1 2027; several anticipate hikes in October and December. They cite broadening inflation, oil prices, rupee weakness and global risks, while growth is seen holding up.
Sunday, 4 October
- Rate cut cycle near turning point. What lies ahead for Indian bonds?