Fresh debt supply to provide directional cue for India bonds
High oil prices weigh on bonds, especially on longer-duration notes
Indian government bonds are expected to open stably on Friday as market participants await the fresh debt supply through the weekly auction. The yield on the benchmark 6.94% 2036 bond is anticipated to trade between 6.94% and 6.99%, after closing at 6.9646% in the previous session. The upcoming sale of bonds worth ₹32,000 crore ($3.39 billion) includes ₹21,000 crore of a new 5-year paper, which could provide a directional cue for the market based on investor appetite.
Meanwhile, elevated oil prices continue to act as a drag on India, particularly for longer-duration notes, while the country's banking system liquidity surplus has reached a record high of 9.7 trillion rupees due to large inflows from the Reserve Bank of India's special schemes.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
