India Bonds Fall Ahead Of Debt Auction, As Crude Oil Prices Rise

Tuesday,   12-Mar-2019   10:20 AM (IST)

Indian government bonds fell in morning trade ahead of a weekly state debt sale and as crude oil prices rose. The benchmark 7.17% bond maturing in 2028 changed hands at 97.70 rupees, yielding 7.53%, at 10:00 a.m. in Mumbai against 97.81 rupees, yielding 7.51%, yesterday. The 7.26% bond maturing in 2029 was trading at 99.24 rupees, yielding 7.37% against 99.36 rupees and 7.35% yield yesterday. Indian states plan to raise at least 190 billion rupees through three-year to 30-year bonds today, of which over 150 billion rupees would be raised via 10-year bonds. The federal government will raise 180 billion rupees on Mar. 15, the biggest weekly debt sale since January 2018.

India aims to raise 7.10 trillion rupees through bonds in the next fiscal year that starts Apr. 1. Investors await India's retail inflation data for February due after market today. The inflation rate is expected to quicken to 2.43% on year in February from 19-month low of 2.05% in January, but remain below 4% target, according to a Reuters poll.