Shorter-tenure bonds taking a hit

GDP growth: Motorists travel past gantry cranes at the Jawaharlal Nehru Port in Navi Mumbai. Data this week is likely to show that the economy expanded 8.2% in the September quarter from a year ago. — Bloomberg

MUMBAI: Shorter-maturity Indian bonds are poised to extend losses amid growing expectations the central bank will accelerate its policy normalisation as the economic revival gains traction.

Rates on notes with maturities of up to two years climbed in recent weeks as the central bank expanded its efforts to remove excess liquidity from the banking system, with the one-year bill yield rising to the highest since April 2020.