MUMBAI: Indian government bond yields were flat early in the session on Thursday as traders awaited the government’s buyback of bonds, while also keeping an eye out for stronger directional triggers.
The benchmark 10-year bond yield was at 6.7767% as of 10:20 a.m. IST, compared with its previous close of 6.7722%.
“There is no major cue for traders to go on either side, and hence we should see sideway moves today and tomorrow,” a trader with a private bank said.
The central government will buyback bonds maturing in the next fiscal year, worth up to 250 billion rupees ($2.98 billion) later in the day.
This would be its second such operation in two weeks. Last week the government had repurchased bonds worth around 244 billion rupees in a similar auction. Earlier this financial year, the country had bought back bonds worth about 302 billion rupees.
Traders also await fresh supply as New Delhi is scheduled to raise 330 billion rupees through the sale of bonds on Friday.
Meanwhile, the benchmark Brent crude remained below $75 per barrel, while the 10-year US yield stayed marginally above the 4% mark.
India bond yields steady ahead of $4bn state debt sale
India is one of the largest oil importers and easing crude prices could reduce inflationary pressures.
The retail inflation accelerated to a nine-month high of 5.49% in September due to higher food prices, up from 3.65% in August.
The jump in retail inflation prompted several economists to push back bets of interest rate cuts by the Reserve Bank of India to the first half of 2025 from early December.
Comments
Comments are closed for this article.