What’s going on here?
Indian government bond yields stayed mostly steady, with the 10-year yield nudging up to 6.8251% as anticipation builds around a new benchmark bond issuance.
What does this mean?
India plans to issue a new benchmark bond as part of its weekly auction, aiming to raise 320 billion rupees. This includes 220 billion rupees of a newly issued 6.79% bond due in 2034. The steady bond yields indicate that traders are awaiting stronger market signals, with expectations that yields could test 6.85% if demand weakens. Meanwhile, US bond yields held at around 4.20%, amid speculation of a Federal Reserve rate cut tied to economic policy and election outcomes. In India, the Reserve Bank’s cautious approach to inflation has fixed the repo rate at 6.50%, although major banks like Barclays predict possible rate cuts by December.
Why should I care?
For markets: Bond market poised for change.
As New Delhi moves forward with its new…
