Indian government bond yields move higher after the RBI’s policy minutes are described as relatively hawkish and after changes affecting the RBI’s diaspora swap window. Traders cited the benchmark 6.94% bond due 2036 as rising in morning trading, with reported yield levels around the mid-to-high 6.8% range.
Multiple outlets link the yield increase to shifting expectations about future interest rates, pointing to the tone of the RBI’s minutes. Business Line reports that the RBI shortens the window for diaspora deposits under a swap mechanism, which it says dents sentiment and could keep yields under pressure. Other Business Line coverage also attributes the bond “wobble” to a combination of the swap pullback and broader macro factors, including pressure linked to oil prices, while noting recent sharp moves versus earlier sessions.
Across reports, yields on the same benchmark instrument rise by several basis points, and different traders provide near-term expectations for a trading band. The overall theme is a reassessment of rate expectations alongside liquidity/flow concerns tied to the RBI’s diaspora swap arrangements.
