MPC minutes show panel's hawkish turn on inflation, sovereign bonds decline

Sovereign bonds in India fell after the minutes of the central bank’s interest rate-setting panel meeting showed its members have turned more hawkish over inflation, pushing back bets on further rate cuts.

The yield on the new 5.77% 2030 bond rose five basis points to 6%, after gaining 18 basis points in the previous two weeks. Traders are watching for demand at a Rs 300 billion bond sale on Friday after last week’s auction of the new benchmark 10-year paper had to be rescued by underwriters.

The rate panelists fretted over a recent surge in consumer