G-Sec yields rise ahead of ₹28,000cr bond auction
Indian government bond yields ticked higher on Friday, with the 10-year benchmark at 6.47% by 10am—just ahead of New Delhi's ₹28,000 crore auction set for later in the day.
The auction will include a 5-year and a 30-year bond.
Traders cautious due to increased government borrowing
Concerns about increased government borrowing are making traders cautious, especially after recent auctions saw weak demand.
Earlier worries about more government borrowing (thanks to August's tax changes) have faded a bit, as officials now say the impact on revenue and fiscal targets should be manageable.
Key factors to watch for in bond market
Everyone's waiting for the government's second-half borrowing plan later this month—hoping for fewer long-term bonds.
Plus, August inflation numbers (expected at 2.1%) could hint at RBI's next moves.
With global rate cuts possibly on the horizon, all eyes are on how these factors shape India's bond market next.