India’s long-term government bonds slipped in early deals on Friday, as the debt supply of such notes will further test investor appetite after a selloff in U.S. Treasuries overnight.
New Delhi will sell 160 billion rupees ($1.87 billion) each of a new 15-year bond and a 40-year paper on Friday, amid weak demand for long-term bonds.
The yield on the benchmark 10-year bond (IN063335G=CC) was at 6.2981% as of 9:45 a.m. IST, after closing at 6.2875% in the previous session.
“With U.S. yields reversing, demand at the auction becomes more crucial as it will give clarity on investors’ comfort with the levels of long-end,” a trader with a state-run bank said.
U.S. Treasury yields rose on Thursday, ending at 4.34%, which is 15 basis points above the lows hit earlier in the week.
Yields rose after data showed the U.S. created more jobs than expected in June, supporting the Federal Reserve’s stance of going slow in rate cuts.
The probability…
