Yields on 10-year bonds slid as much as eight basis points to to 6.08 per cent after surging by as much as 12 basis points earlier.
The benchmark 10-year Indian bond yield dropped 8 basis points (bps) to 6.26%
Amount of debut issue and subsequent tranches will be finalised by FinMin, RBI in end-March
Yields have climbed 25 basis points to 6.71% after the central bank's decision on Dec. 5 to hold policy combined with worries over government borrowings.
The Reserve Bank of India's shock hold on rates last week led to the worst weekly fall in bond prices in more than one-and-a-half years
London-based Jan Dehn, head of research at Ashmore Investment Management,says he is not bearish on Indian equities and the current problems in India are cyclical, but the banking issue
Dollar bonds issued by Indian companies posted their lowest return this year in September
Rupee debt sold off in the past two months, the longest run of losses in a year, after the government's surprise $20 billion tax cut sparked fears of missing deficit targets
The concerns persist even after an assurance from a government official that the borrowing plan remains unchanged
The global financial services major DBS, however, noted that interests in this paper is likely to be lukewarm ahead of the new 10Y issuance in September or October
They say it is anti-patriotic as it could create long-term risks for the economy, potentially allowing rich foreign nations and their financial institutions to dictate the country's policies
Global funds pulled a combined 89.5 billion rupees ($1.3 billion) from local sovereign and corporate bonds so far this month, according to data from the National Securities Depository Ltd
Investors have turned skittish about the health of India's finances amid signs that Centre is ready to sacrifice fiscal discipline as it weighs an aid package to appease farmers, a key voting block
A late-2018 plunge in oil, the biggest bugbear for Indian assets for much of the year, helped drive consumer inflation to a 17-month low
10-year benchmark yield may drop to 7.50 percent by December
The country's fear of foreign capital is irrational and self-destructive
The Reserve Bank of India also announced the government will buy back 200 billion rupees ($3.10 billion) of bonds on Dec 18
Nomura said its India economist Sonal Varma expects only one more rate cut in this cycle
Foreign investors bought a net $76 million worth of Indian government debt on Monday, their highest purchase in four sessions