INDIA BONDS — India bonds seen steady at open; fresh debt supply in focus
By Dharamraj Dhutia MUMBAI, Sept 18 (Reuters) — Indian government bonds are likely to open little changed on Friday, as lower oil prices and US Treasury yields offset caution ahead of a government debt sale later in the day. The benchmark 6.94% 2036 bond yield is expected to trade between 7.01% and 7.06%, according to a trader with a primary dealership. It ended at 7.0463% in the previous session. New Delhi will raise 280 billion rupees ($2.92 billion) through a bond sale later in the day, including the liquid 15-year paper. "Today's cutoff would provide more clarity about investor appetite going into the second half of the year," the trader said. "At the same time, easing oil prices and US Treasury yields should provide some comfort." US Treasury yields fell on Thursday, with the 10-year note around 4.94%, tracking a decline in oil prices as investors booked profits. Yields have risen sharply in recent sessions, crossing the 5% mark after the US Federal Reserve raised rates for the first time since 2023 in a widely expected move to try to control persistently higher inflation. New policy projections showed the Fed may hike rates again before the end of 2026, pushing bets for such
By Dharamraj Dhutia MUMBAI, Sept 18 (Reuters) — Indian government bonds are likely to open little changed on Friday, as lower oil prices and US Treasury yields offset caution ahead of a government debt sale later in the day. 06%, according to a trader with a primary dealership. 0463% in the previous session. 92 billion) through a bond sale later in the day, including the liquid 15-year paper.
"Today's cutoff would provide more clarity about investor appetite going into the second half of the year," the trader said. 94%, tracking a decline in oil prices as investors booked profits. Yields have risen sharply in recent sessions, crossing the 5% mark after the US Federal Reserve raised rates for the first time since 2023 in a widely expected move to try to control persistently higher inflation. New policy projections showed the Fed may hike rates again before the end of 2026, pushing bets for such a move at the October meeting to 54%, and for December meeting to 88%, according to CME FedWatch.
In India, sentiment remained fragile as the RBI drained liquidity on Thursday through its first-ever auction-based open market debt sale in nine years. 2% of total bank deposits, and is set to sell papers worth 250 billion rupees on Monday. Rate hike bets in India have hardened after the Fed's move, with many now expecting the RBI to raise the repo rate by 25 bps on October 7. Rates Overnight indexed swap rates are expected to show limited moves in line with bond yields.
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