The Federal Reserve began its easing cycle with a somewhat unexpected 50 basis point rate cut, implicitly acknowledging that rates may have been held too high for too long
This issuance follows a similar Rs 7,500 crore bond offering on August 28 at a slightly higher coupon rate of 7.42 per cent, a 9-basis point difference
Market participants said that the demand for ultra-long government securities will continue given the favourable demand-supply dynamic
Markets are fully pricing in a rate cut of at least 25 basis points at the Fed's mid-September meeting
The benchmark 10-year yield is likely to move between 6.84 per cent and 6.87 per cent
Market participants expect the benchmark yield to open around 6.85 per cent on Tuesday
The RBI typically sells or buys bonds to adjust banking system liquidity and rates in the market to align with monetary policy
China should quicken fiscal spending and policymakers should shift their stance from prioritising investment over consumption, said Huang
The decision on exclusions from the FAR category is not based on any consideration of volatility
New Delhi also forecast a narrower fiscal deficit of 4.9 per cent of gross domestic product, versus 5.1 per cent in the interim spending plan
Investors have raised bets that former President Donald Trump may out beat US President Joe Biden at the elections due in November, especially after last week's debate
Indian government bonds enter JP Morgan's GBI-EM Index, expected to attract $30 billion in inflows
India inclusion in JP Morgan Bond Index: The inclusion process will begin on June 28, 2024 and will be completed over a period of 10 months, till March 2025
Category has lower share than before among rated instruments
Foreign banks also stepped up purchases of bonds last week ahead of the inclusion, and is expected to continue this week as well
India's index-eligible bonds have attracted $10 billion since the inclusion was announced in September
The government's push for fiscal discipline, compression in the current account deficit and the central bank's focus on inflation have strengthened the case for yields to drop
US yields eased on Tuesday after data showed retail sales in the world's largest economy was weaker than expected in May
Foreign investors added new seven-year bond positions during its auction on Friday, while overseas banks have also been on a bond-buying spree for the last four weeks
Indian sovereign bonds have seen about $9.5 billion of inflows into the so-called Fully Accessible Route - or FAR securities - since the JPMorgan announcement in September