Halister News

(Bloomberg) -- RBI’s policy is fairly hawkish and the change in stance from accommodative to neutral was a surprise, says Sandeep Bagla, associate director at Trust Capital Services India.

• “Clearly the focus is now on financial stability as bonds will react more to global variables,” says Bagla
• Domestic liquidity and low inflation inflation expectations will cushion the fall in bond prices
• Yield on 6.97% 2026 bond yield jumps 25bps to 6.68%

(Bloomberg) -- Markets are not positioned for a change in RBI’s stance to neutral, says Vivek Rajpal, Asia rates strategist at Nomura in Singapore.

• Bond yields will trade in a new, higher range
  • Sees 6.45-6.75% as the new range as market adjusts to the idea that there is no chance of any further RBI rate cuts
• Yield on 10-year bond rises 24 bps to 6.68%
• Rupee pares gain to 0.1% to 67.3475 per USD
• NOTE: India Signals End to Easing Cycle, Unexpectedly Holds Rates
• NOTE: Indian Bonds Plunge as Policy Makers Signal End to Easing Cycle

(Bloomberg) -- The Reserve Bank of India will release its policy rate decision at 2.30pm Mumbai. Consensus calls for RBI to cut both repo and reverse repo rates by 25bps while leaving cash reserve ratio unchanged.

• RBI repurchase rate est. 6% vs prev. 6.25%
• RBI reverse repo rate est. 5.5% vs prev. 5.75%
• RBI cash reserve ratio est. 4% vs prev. 4%
• Top India Forecaster Sees Rate Pause in Break From Consensus
• India Decision-Day Guide: How Long Can Patel Stay Accommodative

(Bloomberg) -- People’s Bank of China officials said to hold meetings with domestic exchanges Wednesday afternoon, according to people familiar with the matter.

• Topics to be discussed include anti-money laundering issues, one of the people said, asking not to be identified discussing a private matter
• The PBOC didn’t immediately respond to a fax requesting comment

Economic Release Details: {BTRR1DAY Index ECOD} --SUNIL JAGTIANI