MUMBAI: Indian government bond yields were barely changed in early deals on Wednesday, as market participants awaited the next liquidity measure from the central bank as well as crucial United States jobs data.
The yield on the benchmark 10-year bond was at 6.2996% as of 10:00 a.m. IST after closing at 6.2927% in the previous session.
The five-year 6.75% 2029 bond was at 5.9674% after ending at 5.9653% on Tuesday.
“Jobs data from the US and the next move from the Reserve Bank of India on liquidity would be the key drivers, and that will also determine the demand pattern for the auction on Friday,” a trader with a state-run bank said.
New Delhi will sell 160 billion rupees ($1.9 billion) each of a new 15-year bond as well as a 40-year paper on Friday.
US non-farm payroll data is due after Indian market hours on Thursday, and would provide insights on the Federal Reserve’s interest rate trajectory.
India bond yields barely changed as traders eye fresh cues
Over the past few days, odds that the Fed will cut rates at a faster pace than previously expected have risen due to weak data and commentary from some officials.
Back home, major focus remains on the RBI’s liquidity management policy, after it conducted a seven-day variable rate reverse repo, withdrawing 850 billion rupees from the banking system, which contributed to pushing overnight rates higher.
The reverse repo will mature on Friday, and focus will be on any follow-up action.
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