India bonds tumble after RBI's first rate hike in nearly four years

The Reserve Bank of India raised its key repo rate by 25 basis points to 5.5 percent, the first hike in nearly four years, and shifted its stance from neutral to calibrated tightening, signalling further hikes or pauses ahead. The 10-year benchmark bond yield spiked to a near three-year high of 7.2655 percent before settling at 7.2410 percent, up 5 bps. Stocks declined and the rupee weakened toward record lows, with analysts expecting a cumulative 75 bps of hikes in this cycle as rising oil prices above 100 dollars per barrel and elevated global yields compound the pressure.