Indian bonds hold steady as big auction looms
Indian government bonds stayed calm this week, with the 10-year yield barely moving as everyone waits for a ₹30,000 crore auction on December 19.
This sale will split between two types of bonds—₹18,000 crore of 6.01% GS 2030 and ₹12,000 crore of 7.09% GS 2074.
Why does this matter?
Big auctions like this decide how much it costs the government to borrow money, which can influence loan rates and investment returns.
The RBI has been stepping in to keep things smooth—on December 18, it bought ₹50,000 crore worth of bonds to boost cash in the system.
What's shaping the mood?
The RBI also added more money through a forex swap recently, but foreign investors have pulled out about ₹10,600 crore this month.
Traders say how eager people are to buy at the auction will decide if bond yields stay low or start climbing.