After Sept, bond yields to peak in Oct too? Experts decode future of Indian bond market; RBI's next move holds key

What happened: India's 10-year benchmark yield rose about 30 basis points in September to roughly 7.20%, tracking a global bond selloff, and 360 ONE Asset's Milan Mody expects the debt market to stay under pressure. Key numbers: 10-year yield up ~30 bps in September to ~7.20%, after an 11 bps rise in August; 6.6% at the start of the year. Why it matters: Mody sees the market moving sideways under pressure with a gradual parallel upward shift, and says the RBI's inflation communication and liquidity approach at the upcoming MPC meeting could be key triggers.

India's 10-year benchmark yield rose about 30 basis points in September to roughly 7.20%, tracking a global bond selloff, and 360 ONE Asset's Milan Mody expects the debt market to stay under pressure.

Mody sees the market moving sideways under pressure with a gradual parallel upward shift, and says the RBI's inflation communication and liquidity approach at the upcoming MPC meeting could be key triggers.