On Monday, the prices of 10-year government bond fell after the RBI governor said that future rate cuts will depend on incoming data. At the same time, rise in crude oil price also had a bearing, as inflation and fiscal slippage concerns weighed.
So, bond yield inched higher to 6.433% from its previous close of 6.364%. As per a Bloomberg News, the RBI's future course of action will likely be dependent on incoming economic data which after a series of moves this year means nearly 100 bps of rate cut.
"The accommodative stance will depend on how inflation numbers look, how the growth numbers look. Primarily on how inflation looks," Bloomberg reported quoting Das.
Also, the Indian rupee was dragged lower after a stronger dollar weighed as traders in the market were pulling away from the nearly 0.5 bps rate cut by the Fed Reserve this month.