Bonds slump after RBI panel report

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