RBI rate cuts lose sway as India bond traders scan rain clouds

Mumbai

RESERVE Bank of India (RBI) governor Raghuram Rajan looks set to cut interest rates for a third time this year and few in the bond market will celebrate.

The yield on the 10-year sovereign notes due 2024 has climbed four basis points from Jan 14, a day before Mr Rajan first cut rates, to 7.81 per cent on Monday. Similar-maturity yields in China have fallen 15 basis points this year as the central bank reduced borrowing costs three times since November.