Since July 2021, the RBI has been conducting auctions for bonds, under uniform pricing, except for ultra-long duration bonds maturing in 30 years and beyond
The yield on the benchmark 10-year government bond fell by four basis points to settle at 7.05 per cent on Thursday, against 7.09 per cent on Wednesday
The cut-off yield on 10-year papers was set in the range of 7.44 per cent - 7.50 per cent on Tuesday, against 7.36 per cent - 7.41 per cent at the previous auction
The benchmark 10-year yield is expected to drift in the 7.03 per cent-7.07 per cent range, following its previous close of 7.0274 per cent, a trader with a private bank said.
Up to $3 bn inflows expected; they won't join Bloomberg Global Aggregate index
Foreign investors pumped in Rs 14,281 crore in domestic debt market in January
Earlier in the day, states raised Rs 16,000 crore ($1.92 billion), the lowest for a weekly auction, via 10-year bonds at around 7.74 per cent
Foreign portfolio investors bought a net 127.2 billion rupees ($1.53 billion) of bonds in November, the highest since June 2017, data from Clearing Corp of India showed
But bond yields may not rise if the inclusion is deferred as the market has not rallied in anticipation, Karyatt added
The inflows will add to the RBI's challenge of keeping liquidity on a leash even as it may need to buy dollars to prevent a sharp appreciation in the rupee
Fiscal, monetary policies will need to be cognizant of global perceptions and sensitivities, says Nageswaran
India's addition to a major global gauge will give global investors greater access to the world's fastest-growing large economy that offers some of the highest returns in the region
India aims to borrow a gross Rs 15.43 trillion via a sale of bonds this financial year. About 42% of that is due to be borrowed in October-March
Earlier in the day, the SBI accepted bids worth 100 billion rupees for 15-year bonds at a coupon of 7.54%
The yield on the benchmark 10-year bond settled at 7.12 per cent, compared to 7.10 per cent on Wednesday
The Reserve Bank of India set the cut-off price on the 7.41%, 2036 bond at Rs 101.90, against the market expectation of around Rs 101.83
Bond prices and yields move inversely
SVB collapse likely to force Fed to go slow on rate hikes, say analysts
The overall sentiment remained weak because of hawkish commentary from central bankers across the world, which dimmed the hopes of domestic interest rate cuts later in 2023, said a dealer at a bank
The key factors that have wreaked havoc on fixed-income and currency markets are the Russian invasion of Ukraine and the US Fed's decision to embark upon the most aggressive monetary tightening cycle