Indian Bond Market

After January's bond market turmoil, triggered by geopolitical events, large-ticket issuers have rushed to raise funds despite rising corporate bond yields due to tight liquidity and increased supply

Despite the doubling in the government's debt sales since the pandemic, robust demand from long-term investors, like pension funds and insurance companies, has helped absorb supply

The Indian rupee plunged against the US dollar on Friday, ending at a record low of 85.53, posting a slump of 0.3 per cent - the biggest for a single session in nearly seven months

Benchmark 10-year bond yield is likely to move between 6.81 per cent and 6.85 per cent till the completion of the auction, compared with its previous close of 6.8329 per cent

Overseas investors sold Rs 2,800 crore ($333 million) of the so-called Fully Accessible Route bonds in October, according to Clearing Corporation of India Ltd. data.

Global funds last week sold Rs 870 crore ($104 million) of the so-called Fully Accessible Route bonds

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

Foreign investors still hold Indian government debt worth Rs 2.47 trillion-- either through FAR securities or through derivatives such as total return swaps (TRS)

The benchmark bond yield may drop to 6.30 per cent by March end, on strong foreign inflows and rate cuts from the central bank

Traders will also focus on fresh debt supply, while also remaining cautious after rise in US Treasury yields

The benchmark 10-year yield is likely to move between 6.75 per cent and 6.78 per cent on Monday

Markets have fully priced in a rate cut of at least 25 bps at the Fed's policy decision due on Sept. 18, with expectations for a 50 bps remaining around 30%

The market is closely watching key US data and Federal Reserve's rate action as these will be directional cues

Fed Chair Jerome Powell had last week delivered his strongest signal that interest rates will come down in September

The benchmark 10-year yield is likely to move between 6.84 per cent and 6.87 per cent

The benchmark 10-year yield is likely to move between 6.85 per cent and 6.88 per cent

The RBI last week kept the key interest rate unchanged, retaining its focus on bringing inflation down

Yields on 30-year bonds have dropped more than 40 basis points this year to 7.04 per cent on Friday

South Asian nation's star economy and improving business environment, at a time of slowing growth in China, has made Indian assets investor darling

The latest data has led to a repricing of interest rate cut expectations, with the probability of a 25-basis-point rate cut by the Federal Reserve in September