India consumer inflation likely snapped a four-month downward trend in May due to rapidly rising food costs
US bond yields rose after the economy created far more jobs than expected in May
Bond yields shot up on Tuesday and have largely remained elevated after a weakened mandate for Prime Minister Narendra Modi's party
Foreign investors have piled on bonds this year and remained on the buying side on Tuesday, despite the unexpected election outcome hitting stocks
Market expected strong opening by the ruling alliance, say one bond dealer
India's benchmark 10-year yield is likely to move in a 6.94 per cent -7.00 per cent range, following its previous close of 6.9809 per cent , a trader with a state-run bank said
Foreign investors are increasingly showing a preference for India's sovereign debt over China's to reap gains from the nation's faster economic growth
Overseas investors bought about $358 million of bonds on Monday, the most in two months and a seventh successive day of purchases, data compiled by Bloomberg show
Sovereign bonds have already rallied in recent weeks, boosted by a reduction in short-term borrowings
Indian government bonds are set to be included in the JPMorgan Emerging Market local currency debt index from June 28
Bond yields have eased over the last few sessions, after the Reserve Bank of India's board last week approved the transfer of a record 2.11 trillion rupees as surplus to the government
Along with direct purchases, foreign investors have leaned on derivative proxies to gain exposure to Indian bonds
The government has bought back securities aggregating to only around Rs 17,900 crore ($2.15 billion), against notified quantum of Rs 1.60 trillion in May
Traders were also cautious after the 10-year US yield moved off its recent lows, but continued to remain around the 4.35 per cent mark.
The central bank said it would buy back Rs 60,000 crore worth of securities, maturing this financial year, on May 21
Inflation accelerated in the first quarter on strong domestic demand after moderating for much of last year
The US Treasury yields slipped on Thursday ahead of inflation reports that are pivotal for the Federal Reserve's higher-for-longer rate strategy
The difficulty in setting up to trade in India due to an elaborate documentation process has been one reason why foreign investors have been apprehensive about the nation's entry into global indexes
Once the change takes effect on June 28, it will be easier to compare the performance of an Indian credit fund with an investment in Singapore, Korea or the US, said the head of BPEA Credit
Foreign investors have pumped roughly Rs 78,000 crore ($9.4 billion) into eligible sovereign bonds since JPMorgan Chase & Co.'s landmark announcement in September