Yields jumped an average of 10 basis points during the most significant crude spikes in recent history, with India’s five-year bond showing the most consistent reaction out of seven such events dating back to 2015. This was followed by Philippine debt, while China notes displayed the most resilience against increases in energy prices.
A selloff in India’s bond markets, including its corporate debt, is gathering pace as oil prices extend their rally above $110 a barrel after Russia invaded Ukraine. Traders are pricing in a more hawkish trajectory for the Reserve Bank of India, with overnight index swaps showing expectations for two rate hikes over the next six months.
Complete News Source : Business Standard
