Bonds slump after RBI panel report

Tags: bonds, RBI, News
Government bonds slumped in early trade on Wednesday after RBI panel suggested targeting consumer

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price inflation, which if accepted, may result in interest rates staying higher for long.

The benchmark 10-year yield rose 9 basis points to 8.64%.

The Reserve Bank of India should make managing inflation its main policy objective and set up a monetary policy committee, a central bank panel has recommended, a shift that would bring its practices in line with many other central banks.

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