Bond investors see RBI curbing yields as India looks to sell $3.6 bn bonds

The bond auctions Thursday drew lower-than-expected cutoff yields, including 5.9726% on the benchmark 10-year note, compared with 6.03% estimated in a Bloomberg News survey

India is set to sell another Rs 260 billion ($3.6 billion) of bonds on Friday amid rising expectations that the central bank will step into the market to keep yields from rising too far.
 

Surprise demand at a special auction of government debt on Thursday spurred talk that state-run banks and primary dealers were scooping up bonds to sell to the Reserve Bank of India as other investors pulled back. The RBI’s recent market interventions, including this week’s open market operation, have helped anchor the benchmark 10-year yield below 6%.

“The market reaction indicates that the central bank may keep benchmark