Indian government bonds dip as big auction and major decisions loom
Business
Indian government bonds slipped in early deals on Friday, with the key 10-year yield ticking up just before a huge ₹310 billion ($3.43 billion) bond auction—including a new 50-year bond for long-term investors.
The market's feeling tense with the Union Budget coming up on February 1 and the RBI's next policy decision set for February 6.
Market mood cools after index delay and rising swap rates
Investor confidence took a hit when Bloomberg postponed adding Indian bonds to its global index, making traders less optimistic.
Plus, the RBI's recent bond buys have focused on less popular securities, so they haven't boosted market vibes much.
With more selling of government bonds, overnight swap rates have climbed—making people doubt we'll see interest rate cuts from the RBI anytime soon.