Indian government bonds slip ahead of ₹340 billion debt auction
Business
Indian government bonds slipped today, with investors on edge ahead of a hefty ₹340 billion (about $3.56 billion) debt auction set for Friday.
The bond yield nudged up to 6.8619%, showing some nerves in the market, even though cheaper oil prices usually help out.
RBI minutes hint at rate hikes
The Reserve Bank of India's latest policy minutes added to the jitters, hinting at possible interest rate hikes if inflation risks materialize and broaden.
This uncertainty is making traders extra careful, pushing swap rates a bit higher.
On the bright side, global oil prices have dropped for four days straight, good news for India's inflation worries, but everyone's still waiting to see what new inflation data brings before the next RBI meeting in October.