Indian bonds steady ahead of ₹30,000cr state debt auction
Indian government bonds stayed pretty calm on Tuesday, even as markets geared up for a big state debt auction where states are set to borrow ₹30,100 crore.
This is just one chunk of a much larger ₹5 lakh crore borrowing plan scheduled for January-March 2026.
With not many buyers jumping in right now, traders think this sale will really test how much demand there is—and they're expecting yields (the returns investors get) to rise a bit.
How the market and RBI are reacting
Bond yields ticked up only slightly to about 6.64%.
To keep things steady and avoid too much supply flooding the market, public sector banks have snapped up about ₹12,500 crore in bonds over three days.
The RBI is also stepping in—buying ₹50,000 crore worth of bonds already and planning another ₹1 lakh crore purchase soon.
Plus, they've announced a $10 billion forex swap next week to help balance things out further.