MUMBAI: Indian government bond yields fell in early trading on Friday, as US Treasury yields extended losses on bets of a rate cut in September.
India’s benchmark 10-year yield was at 6.9779% as of 10:00 a.m. IST, following its previous close at 6.9872%.
New Delhi aims to raise 340 billion rupees ($4.07 billion) through the sale of bonds, which includes a new seven-year paper, on Friday.
“There could be some continued momentum from yesterday’s trend, where we saw decent buying in the last hour or so, but after the initial moves, the market would focus on auction demand,” the trader said.
India’s bond market sentiment is upbeat as the inclusion of bonds in JPMorgan’s emerging market debt index nears. Gloria Kim, global head of index research at the bank expects inflows into Indian government bonds to be between $20 billion and $25 billion after the inclusion.
Investors await clarity on India’s fiscal consolidation path…
