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Sovereign bonds plunge as RBI holds key rate

The yield on govt notes due September 2026 jumped 21 bps to 6.41% in Mumbai, prices from RBI's trading system show

Kartik Goyal/Bloomberg 

Sovereign bond yields climbed the most in three years after policymakers kept interest rates unchanged, ahead of a probable increase in US borrowing costs this month. The monetary policy committee, led by Reserve Bank of India (RBI) Governor Urjit Patel, left the benchmark repurchase rate at 6.25 per cent, according to a central bank statement in Mumbai on Wednesday. The outcome was predicted by only eight of 44 economists in a Bloomberg survey, while 31 expected a cut to six per cent and five saw a reduction to 5.75 per cent. The yield on government notes due September 2026 ...

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First Published: Thu, December 08 2016. 00:56 IST
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