Indian bonds tumble on oil surge, RBI rate hike fears

What happened: Indian government bonds fell as the benchmark yield exceeded 7.45% on Thursday, with oil prices rising and the RBI having raised its repo rate to 5.50%. Key numbers: Benchmark yield above 7.45%; oil at $112.50 per barrel in Asian trading; repo rate at 5.50%. Why it matters: The RBI indicated potential for further hikes, and retail inflation is expected to surpass the central bank's tolerance limit, adding to inflation concerns.

Indian government bonds fell as the benchmark yield exceeded 7.45% on Thursday, with oil prices rising and the RBI having raised its repo rate to 5.50%.

The RBI indicated potential for further hikes, and retail inflation is expected to surpass the central bank's tolerance limit, adding to inflation concerns.