India bonds could open weaker as US threatens more Iran sanctions
TLT•Rates market
India's overnight indexed swap rates may continue to witness further uptick tracking bond yields.
The one-year INR1YMIBROIS=CC rate ended at 5.9025%, while the two-year INR2YMIBROIS=CC rate closed at 6.1250%. The liquid five-year INR5YMIBROIS=CC rate settled at 6.42%.
(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)
Policy risks and central bank support
Last week, minutes of the Reserve Bank of India's August monetary policy showed policymakers are open to rate hikes, if inflation risks materialise and broaden.
Governor Sanjay Malhotra said evidence of such spillovers could warrant "policy tightening", while Deputy Governor Poonam Gupta said a case for a hike may emerge this year.
