India bonds buckle for fourth straight month on oil's climb
Indian government bonds ended October with losses, marking a fourth consecutive decline in bond yields. Brent crude oil prices surged, raising inflation concerns for the country. The Reserve Bank of India raised its policy rate for the first time in nearly four years this month. Foreign investments in Indian bonds fell to a four-month low, causing further concerns about the rupee's performance.
Indian government bonds ended a bruising October with fresh losses on Friday, marking a fourth straight monthly decline as oil's surge rekindled inflation fears and the central bank's broader tightening campaign rattled the market.The benchmark 6.94% 2036 bond yield rose 2.5 basis points to 7.4139%, advancing 22.5 bps in October. Bond yields move inversely to prices.Brent crude is poised for a fourth monthly advance, up nearly 14% in October, clouding the economic outlook for the world's third-largest oil importer.It surged to $117.55 on Friday, its highest intraday level since April 30, as investors priced in a potential escalation of the US-Iran conflict after the US midterm elections next week.Foreign money also continued to flow out of the Indian bond market, with exposure to index-eligible notes falling to a more than four-month low.
