Debt markets cheer as RBI may lean dovish amid disinflation

Indian bonds rally as markets bet on a dovish RBI due to weak inflation and input‑cost pressures.

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Debt markets cheer as RBI may lean dovish amid disinflation

Debt markets cheer as RBI may lean dovish amid disinflation
India’s bond yields are under downward pressure as investors increasingly price in a possible rate cut by the RBI. Soft CPI and WPI inflation prints, combined with deflation in wholesale food costs, fuel demand for sovereign debt. 
Analysts argue that lower input-costs will ease borrowing stress for government and corporates, enabling durable lower-rate expectations. However, the risk of deflation hurting rural demand remains a counterweight.
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  • india