Rupee, bonds continue to fall despite Moody's outlook revision to stable

The government and the RBI have been engaging with global bond index providers such as Bloomberg, JP Morgan and FTSE for inclusion of government bonds

Markets shrugged off the outlook revision by rating agency Moody’s as oil prices crossed $83 per barrel.  

The global rating agency revised India’s outlook to stable from negative stating that the risks of negative feedback between the real economy and financial system are receding. Higher capital cushions and higher liquidity also reduced the risk to the sovereign from banks and non-banking financial companies, Moody’s said. It also said that it expected the elevated general government debt to reduce in the next few years, preventing further deterioration of the sovereign credit profile.  

However, the bond yields continued to rise. The 10-year bond yield