Indian government bond yields jumped on Friday as debt sale boosted supply, while traders cut positions after the government’s weekly debt auction.
Yields were little changed for the week with investors waiting for fresh economic cues.
The benchmark 10-year yield ended at 7.3736%, highest since November 9, after closing at 7.3271% on Thursday.
It posted its biggest single day rise since November 3, ending four basis points higher for the week.
“Traders do not want to hold excess stock, and hence after the auctions, they aggressively offloaded stock in secondary market, said Debendra Kumar Dash, senior vice president, treasury, at AU Small Finance Bank.
New Delhi on Friday raised 280 billion rupees ($3.39 billion)through the sale of bonds which included 120 billion rupees of the benchmark note.
“People are turning cautious before the U.S. data, as the Fed may turn more aggressive,” Dash added.