The yields on India’s 10-Year G-Sec hovered around 6.75%, steadying after falling in the previous session as investors awaited the auction of INR 320 billion worth of three- and 30-year government bonds.
Yields found support from relatively stable crude oil prices near $85 per barrel and softer US Treasury yields, which eased external pressure despite renewed geopolitical tensions in the Middle East. Demand for Indian sovereign debt also remained resilient despite higher-than-expected domestic inflation, rupee weakness, and escalating geopolitical tensions.
Overseas investors purchased about INR 16.5 billion of bonds under the Fully Accessible Route this week amid expectations of India’s inclusion in the Bloomberg bond index, while foreign banks turned net buyers on Thursday, acquiring more than INR 50 billion of government bonds after a three-session selling streak, supporting sentiment ahead of the debt sale.
