The announcement comes just three months after India imposed controls on foreign ownership of some newly issued bonds with 14-year and 30-year tenors
Overseas investors sold Rs 2,800 crore ($333 million) of the so-called Fully Accessible Route bonds in October, according to Clearing Corporation of India Ltd. data.
New Delhi aims to raise Rs 32,000 crore ($3.81 billion), which includes Rs 22,000 crore of the new 6.79 per cent 2034 bond that will replace the existing benchmark note soon
Indian bonds have attracted $15.7 billion of inflows this year, the most in Asia behind China, South Korea and Japan, data compiled by Bloomberg show
Global funds last week sold Rs 870 crore ($104 million) of the so-called Fully Accessible Route bonds
Data showed US retail sales rose 0.4 per cent last month, above the 0.3 per cent estimate of economists polled by Reuters, and after an unrevised 0.1 per cent gain in August
The benchmark bond yield may drop to 6.30 per cent by March end, on strong foreign inflows and rate cuts from the central bank
Expectations of a 25 bps cut in November are at 88 per cent, while bets of no cut rose to 12 per cent from less than 10 per cent a day ago
Traders will also focus on fresh debt supply, while also remaining cautious after rise in US Treasury yields
The benchmark 10-year yield is likely to move between 6.75 per cent and 6.78 per cent on Monday
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
The market is closely watching key US data and Federal Reserve's rate action as these will be directional cues
Fed Chair Jerome Powell had last week delivered his strongest signal that interest rates will come down in September
The benchmark 10-year yield is likely to move between 6.84 per cent and 6.87 per cent
The benchmark 10-year yield is likely to move between 6.85 per cent and 6.88 per cent
Traders will, however, watch out for minutes from the latest policy meetings of Fed and Reserve Bank of India
The RBI last week kept the key interest rate unchanged, retaining its focus on bringing inflation down
AT-1 bonds are perpetual bonds issued by banks to raise money to meet regulatory capital requirements
Offshore investors bought Rs 90.9 billion ($1.1 billion) of the so-called fully accessible route bonds in the week through Aug. 2
The persistent purchases by foreign participants will reduce the pressure on local banks to absorb supply