India's Government Bond Yields Surge 21bp to 5.9750% on May 20, Largest Weekly Gain in Four Years

According to Jin10, India's government bond yields surged on May 20, with the 364-day bond yield rising 21 basis points to 5.9750%, marking the largest weekly gain in four years, as markets price in expectations of potential central bank rate hikes.

Puneet Pal, head of fixed income at PGIM India Mutual Fund, stated that three-month government securities pricing now reflects expectations of a 25 basis point rate hike, noting that bond yields had been too low relative to overnight index swaps and bank fixed deposits.