Government Bond Auction

Data showed US retail sales rose 0.4 per cent last month, above the 0.3 per cent estimate of economists polled by Reuters, and after an unrevised 0.1 per cent gain in August

India will report consumer price inflation data today

Corporate bonds have also benefited from flows into government debt as the former is largely priced off sovereign notes

Since July 2021, the RBI has been conducting auctions for bonds, under uniform pricing, except for ultra-long duration bonds maturing in 30 years and beyond

Amount higher than scheduled figure of Rs 32,532 crore, a first in seven weeks

The Fed hinted at a pivot in its December policy, and signalled three potential rate cuts totalling 75 bps in 2024

Spreads widens between 10-yr State & GOI bonds

Treasury yield rose above 4.65% on Monday but eased in Asian trading hours and was last at 4.6141%

The benchmark 10-year government bond yield settled at 7.20 per cent, while the new 10-year bond yield settled at 7.18 per cent

The government will sell a notified amount of Rs 28,000 crore worth of three securities on Friday

Apart from long-term bonds, the market participants also requested the central bank to reduce issuance of floating-rate bonds and cap sizes of weekly primary auctions to Rs 30,000 crore

Signals central bank's comfort with yields

The government decided to cancel the auction on review of its cash balances, RBI said in a statement after close of markets Monday

In a notification on its website, the central bank said it would buy Rs 20,000 crore of bonds from the secondary market, and sell Rs 15,000 crore of bonds

Central bank will sell Rs 11,000 cr each of 10-yr and 5-yr bonds on Thursday; Govt has kept Rs 2,000 cr green shoe in each; on Friday, RBI will auction Rs 26,000 cr of bonds as per prior plan

After the auction the 10-year benchmark bond yield eased by one basis point to 7.73 per cent as the long-end papers were fully sold