Indian government bonds likely to remain stable today
Indian government bonds are expected to stay pretty steady this Wednesday, as everyone waits to see the borrowing plans for the second half of fiscal year 2025-26.
Recent strong results at a state debt auction have lifted some spirits, but there's a twist—India's banking system is now running its biggest cash shortfall since March 26, with a ₹320 billion ($3.61 billion) gap.
Traders are closely watching for updates from upcoming states' borrowing
The 10-year benchmark bond yield is hovering between 6.45% and 6.48%, after closing at 6.4729% on Tuesday. Yields dipped a bit thanks to lower-than-expected state debt costs, and falling US Treasury yields are also helping out here.
Meanwhile, overnight index swap (OIS) rates remain stable, suggesting no big moves in short-term interest rates just yet.
Traders are watching closely for updates from the upcoming states' borrowing calendar as the quarter wraps up—so expect some portfolio shuffling soon!