Indian bonds under pressure as yields rise to 6.71%
Business
Indian bonds took a hit this week, with yields rising to 6.71% after a recent government debt switch.
This move cooled expectations for more liquidity-tightening steps and has investors watching closely as the market shifts.
Investors are feeling the heat from new supply
The government and RBI just pulled off a second debt switch, swapping out old bonds for new ones, which could reduce the gross borrowing number for the upcoming fiscal year.
But with a fresh ₹33,000 crore bond auction around the corner, investors are feeling the pressure from all this new supply.
The RBI is still stepping in to buy bonds and steady things, but there's definitely a sense of mixed signals in the air right now.