MUMBAI: Indian government bond yields are expected to rise on Tuesday, with a debt sale totaling $3.54 billion by the government weighing on prices and a spate of holidays this week keeping traders wary.
The government is set to sell on Tuesday 30 billion rupees each of 8.97 percent 2030 bonds and 8.83 percent 2041 bonds; 80 billion rupees of 9.15 percent 2024 bonds and 40 billion rupees of 8.19 percent 2020 bonds.
The 10-year benchmark bond yield is expected to open around 8.60 percent and move in a 8.59 to 8.64 percent band. It closed down 4 basis points on Friday at 8.57 percent.
The market was closed on Monday for yearly closing of bank accounts and will be shut on Thursday and Friday for local holidays.
The central bank bought just 45.28 billion rupees of government bonds on Friday, lower than the notified 100 billion rupees, and officials have said any injection of cash through open market operations would be motivated solely by liquidity shortages.
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