Govt bond yields seen hardening after Das rules out 'risky' rate cut

Government bond yields are expected to rise on Monday as the market sentiment dampened after Reserve Bank of India (RBI) Governor Shaktikanta Das cautioned that an interest rate cut at this stage could be "very premature" and "risky", citing significant inflation risks.

- ANJALI KUMARI

The RBI has projected inflation at 4.5 per cent for FY25, based on the assumption of a normal monsoon and stable supply conditions. However, retail inflation surged to a nine-month high of 5.49 per cent in September. "The yield (on the benchmark 10-year government bond) will trade between 6.80 per cent and 6.85 per cent," said a dealer at a state-owned bank.