Indian government bonds slide for eighth week as RBI tightens stance

Indian government bonds have extended losses for the eighth consecutive week, weighed down by rising oil prices and a more aggressive monetary policy stance from the Reserve Bank of India. Benchmark bond yields have climbed, reflecting diminished investor confidence in the debt market.

The RBI has raised the repo rate to 5.50%, marking its continued tightening cycle. Economists expect further rate increases, with projections suggesting the benchmark rate could reach at least 6.00% in coming months.

The combination of elevated crude oil prices and the central bank's hawkish outlook has created headwinds for the bond market, as investors reassess their positions amid expectations of sustained monetary tightening.