Indian bonds hang tight ahead of supply
Benchmarks Nifty23,092.7595.41FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.69 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.78 % Invest NowEnter search…
Indian government bonds remained stable on Friday as traders contemplated the central bank's forthcoming policy moves. A noteworthy auction of 10-year bonds is on the horizon, anticipated to shed light on market demand and interest. Recent shifts in US Treasury yields have bolstered the Indian market. The Reserve Bank of India is fine-tuning financial conditions to cope with capital outflows and escalating shorting costs of the rupee.
Indian government bonds were pinned in a narrow range on Friday, as a hefty auction of benchmark 10-year debt kept traders guarded while they assessed the central bank's policy outlook.The benchmark 6.94% 2036 bond yield was at 7.3895% at noon, versus 7.3921% on Thursday. Bond yields move inversely to prices.
New Delhi's 340 billion rupee ($3.58 billion) sale of the 10-year paper will test demand in a market already swamped by supply, where concerns have intensified since central and state borrowing calendars tilted toward longer-dated issuance.
Bonds Corner Powered By Indian bonds hang tight ahead of supply
Indian government bonds remained stable on Friday as traders contemplated the central bank's forthcoming policy moves. A noteworthy auction of 10-year bonds is on the horizon, anticipated to shed light on market demand and interest. Recent shifts in US Treasury yields have bolstered the Indian market. The Reserve Bank of India is fine-tuning financial conditions to cope with capital outflows and escalating shorting costs of the rupee.
Kotak MF suspends subscriptions in two debt funds holding Yes Bank AT1 bondsDemand for bank loans rises amid hardening yields
Supreme Court rules against Yes Bank's write-off of Rs 8,415 crore AT1 bonds
Torrent Power plans around $500 million bond sale, bankers say Browse all Bonds News withA sharp retreat in US Treasury yields, however, offered some support. The 10-year Treasury yield fell 11 basis points to 5.08% in the previous session.
Traders are also recalibrating for the Reserve Bank of India's rupee defence, which could involve tolerating higher domestic yields to preserve the spread over US rates.
Live Events
The RBI is expected to tighten financial conditions further to stem capital outflows and raise the cost of shorting the rupee, though it is unlikely to reprise the aggressive measures deployed during an earlier currency crisis, sources and analysts told Reuters.
The central bank raised policy rates this month for the first time in nearly four years and has drained liquidity through bond sales, tighter reserve requirements and stricter forex-hedging rules.
"Bonds, to some degree, are paying the price for the authorities' efforts to defend the rupee against the additional headwind of weak global conditions," DBS Bank said.
Above-target inflation and the rupee's roughly 6% decline this year have stoked bets on a larger December rate hike, lifting short-end yields and swap rates.
Tighter daily cash reserve ratio rules, effective Friday, may add to pressure on short term bonds.
Rates
India's overnight indexed swap rates fell as easing rupee forwards brought relief.The one-year OIS rate eased 3.5 bps to 6.5025%, while the two-year rate fell 4.25 bps to 6.5925%, and the five-year rate dropped 2.75 bps to 6.76%.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onIndian bondsReserve Bank of IndiaIndian government bondsbond yields
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onIndian bondsReserve Bank of IndiaIndian government bondsbond yields
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionUS mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?
The ABCD of the US mid-term elections – Part 1: Why it matters across the globe
Curbing rupee bets: What the RBI’s new rules mean for the hedge-now-or-wait question
Brinjal, buffalo, bacteria: Inside India’s pay-for-nature system
Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects
The NBFC saga - Part 3: How one default in 2018 changed the way RBI reads risk
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
