Indian government bond yields decreased on Tuesday as traders closed off short bets in advance of Wednesday’s important economic growth data release.
The benchmark 10-year government bond yield increased three basis points on Monday to end at 7.2534%, and it was up to 7.2221%. After reaching 7.2347% on Monday, the new 10-year 7.26% 2032 bond yield stood at 7.2083% on Tuesday.
On Wednesday, when markets will be closed for a festival, India is set to announce data for the period of April to June’s economic growth.
A Reuters survey of 51 economists indicated that the economy is expected to have grown by an annual 15.2% in the April-June quarter due to a weak foundation last year and a rebound in consumption as pandemic restrictions loosened.
High global oil costs, meanwhile, prevented further improvements and raised concerns about inflation.
The next policy decision by the RBI, which has been concentrating on getting inflation under control, is scheduled for September 30. Between May and August, the key policy rate was raised by 140 basis points.
The price of Brent crude fell from its peak as the Organization of the Petroleum Exporting Countries and its partners were expected to cut supplies. Last seen at $104.25 per barrel, it had previously reached $105.48 on Monday.
India is a significant importer of crude oil, and rising prices are anticipated to increase domestic inflationary pressures. Consumer inflation in India has stubbornly remained above 6% for seven months.
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