New Delhi aims to raise Rs 280 billion ($3.35 billion) by selling bonds through the weekly auction, including the liquid 15-year paper
Investors continue to gauge the pace of foreign inflows into Indian government bonds over the next few days after an underwhelming response so far
The yield spread between the 10-year government bond and state bonds stood between 34 basis points and 38 basis points
US yields rose on Friday and gained further during Asia hours as uncertainty around the US presidential election
Most Indian government bonds under the Fully Accessible Route (FAR) will be a part of the JPMorgan index. These papers have already seen inflows nearing $11 billion since the inclusion's announcement
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
Inflows into bonds under the fully accessible route, which will be included in JPMorgan's widely-tracked emerging market debt index on June 28, have risen to more than $10 billion
The benchmark 10-year yield ended at 6.9858 per cent, following its previous close of 6.9741 per cent
Indian bonds will be included in JPMorgan's widely-tracked emerging market debt index on June 28
To accommodate India's 10 per cent weight in the GBI EM index, HSBC said in a recent note, a reweighting will occur for other EM peers in the index, which will see a reduction in their weights.
Foreign banks also stepped up purchases of bonds last week ahead of the inclusion, and is expected to continue this week as well
While news of Modi's poor electoral showing triggered a bond selloff, the market later recovered after cabinet appointments including FM Sitharaman were seen to indicate no change
Since May 2024, foreign investors have been net buyers in the debt market, even as they have been net sellers in the equity market over the last two months
The company will offer a yield of 8.35 per cent on this issue, and has invited bids from bankers and investors on Monday
Reserve Bank of India (RBI) will release the minutes of its June policy meeting after market hours on Friday
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
The $2 billion, single-day inflow estimate by four bankers trails only the record-high $2.7 billion poured into Indian bonds on Aug. 20, 2014
The British bank, via its unit in the International Financial Services Centres Authority, carried out the so-called total return swap deals worth more than $250 million
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