India’s bond market signals extended rate pause despite low inflation

India’s bond market indicates a likely pause in the RBI’s rate-easing cycle, despite retail inflation hitting an eight-year low. A surge in yields has significantly widened the spread between 10-year bonds and the repo rate, signaling market expectations of sustained policy hold.

​India’s bond market indicates a likely pause in the RBI’s rate-easing cycle, despite retail inflation hitting an eight-year low. A surge in yields has significantly widened the spread between 10-year bonds and the repo rate, signaling market expectations of sustained policy hold.