Indian bonds dip as big debt sale looms
Indian government bond yields just climbed to 6.6290%, right before a major ₹290 billion bond sale by New Delhi.
Even though the RBI recently bought up a huge chunk of bonds (₹2 trillion worth!), demand is still on the quieter side, partly because the RBI's focus on buying less-traded bonds has dented demand, and there's already a lot of state debt out there.
What's next: RBI moves and market buzz
The RBI isn't done yet—it plans to buy another ₹1 trillion in bonds by January 22 to help keep things steady after India projected fiscal year GDP growth at 7.4%.
Meanwhile, traders are waiting to see if Indian bonds will get added to the Bloomberg Aggregate Index, which could shake things up.
Also, swap rates are ticking up, showing that investors are rethinking where interest rates and the economy might be headed next.