India Bond Yields Flat Before Auction Outcome

Friday,   22-Jan-2021   01:20 PM (IST)

Indian federal government bond yields were largely unchanged in the afternoon session, as traders awaited the outcome of a weekly debt sale. The benchmark 5.77% bond maturing in 2030 changed hands at 98.59 rupees, yielding 5.97%, at 1:00 p.m. in Mumbai against 98.65 rupees, yielding 5.96% yesterday. The Indian rupee was at 73.04 to the dollar against 72.99 yesterday. New Delhi is selling 270 billion rupees of bonds today, including the 5.85% 2030 paper. This note will replace the benchmark bond in the coming weeks. India’s central bank typically announces OMOs on Thursdays, but had announced one last Friday. India’s federal budget for the next fiscal year is due on Feb. 1. The federal government may aim to borrow 10.50 trillion rupees through bonds in the next fiscal year to fund its budget deficit, according to the median of a NewsRise poll of 15 market participants. The benchmark Brent crude oil contract was trading 1.1% lower at $55.50 per barrel as rising coronavirus cases in China, the biggest oil importer, increased worries on fuel demand. India imports nearly 85% of its crude oil requirements.