Indian government bonds steady as states prepare 201 billion-rupee sale
Indian government bonds didn't budge on Tuesday, even after a recent dip.
Oil prices stayed surprisingly stable, despite fresh US sanctions on Iran, good news for India since it imports so much oil.
Now, all eyes are on states' 201 billion-rupee ($2.10 billion) debt sale happening later today, which will show how much demand there really is for these government securities.
Main 2036 bond yield holds 6.8708%
The main 2036 government bond yield held at 6.8708%, with traders weighing worries about inflation and a weakening rupee against the comfort of plenty of cash in the banking system.
The Reserve Bank of India has hinted it could raise interest rates if inflation keeps rising, but right now, strong liquidity (over three trillion rupees) is helping support demand for bonds.
Oil prices hovering near $92 per barrel haven't caused any major shocks so far.