Indian government bonds turn lower as an above-view inflation reading for August dashes hopes of a rate cut by the RBI on Monday; the benchmark 8.15% 2022 bond is at 99.80 vs an intraday high of 100.30 and 99.82 at Thursday's close. A dealer with a state-run bank says dealers will be focussing on the tone of the RBI's policy statement following the government's move to raise diesel prices Thursday. "I expect a dovish stance because the government has finally taken a concrete step towards fiscal consolidation," he says. He tips the benchmark yield in a 8.17%-8.20% band until the policy announcement; it is last at 8.18%. The wholesale price index rose by 7.55% year-on-year in August vs 6.9% in July. All 15 economists polled by Dow Jones expect the RBI to stand pat on rates.
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