India bonds extend weekly slide; struggle to shake off RBI hike, hawkish stance shift

What happened: India's benchmark 6.94% 2036 bond ended at 7.2994% on Friday, up from 7.2868% on Thursday, as bonds fell for an eighth straight week after the RBI raised its repo rate by 25 basis points to 5.50% and shifted its stance to "calibrated tightening" from neutral. Key numbers: Yield rose 9 basis points this week, adding to a cumulative 45 basis Why it matters: Economists expect the terminal repo rate to reach at least 6.00%, with Standard Chartered and Goldman Sachs forecasting 6.25%. OCBC expects another 25 basis point hike through March 2027, with risk skewed toward more hikes.

India's benchmark 6.94% 2036 bond ended at 7.2994% on Friday, up from 7.2868% on Thursday, as bonds fell for an eighth straight week after the RBI raised its repo rate by 25 basis points to 5.50% and shifted its stance to "calibrated tightening" from neutral.

Economists expect the terminal repo rate to reach at least 6.00%, with Standard Chartered and Goldman Sachs forecasting 6.25%. OCBC expects another 25 basis point hike through March 2027, with risk skewed toward more hikes.