India bond yields seek direction at start of week
Timilehin Adejumobi
1 min read
Indian government bond yields were flattish at the beginning of the week, while traders sought direction after the recent rise in yields.
The benchmark 7.26% 2033 bond yield was at 7.0325% as of 10:00 a.m. IST, after closing at 7.0354% in the previous session.
The market is directionless currently, and at these levels, traders are not willing to go either side heavily, a trader with a state-run bank said.
“There is some positivity due to lower state debt sale quantum, but people are not comfortable adding,” the trader said.
Indian states aim to raise 56 billion Indian rupees ($683.22 million) through the sale of bonds on Tuesday, with the quantum being sharply lower than the scheduled 180 billion rupees.
States had raised more-than-expected funds in the last three auctions, with borrowing rising sharply to 654 billion rupees during that period, after remaining low in the first month of fiscal 2024.
Market sentiment has turned cautious after the Federal Reserve hinted at an aggregate of 50 basis points of more rate hikes in 2023, with odds of a rate hike in July staying around 70%.
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