Commodities
Debt Supply Concerns Trump Oil Price Decline for Indian Bonds
Indian government bonds declined on Thursday as concerns over heavy debt supply outweighed the impact of retreating oil prices.
The benchmark 6.94% 2036 bond yield was at 6.8619% by 10:30 a.m. IST, after closing at 6.8488% on Tuesday.
New Delhi is set to raise 340 billion rupees ($3.56 billion) through the sale of benchmark paper on Friday, which will take its outstanding to 1.80 trillion rupees.
A trader noted that concerns about the auction's outcome were having a larger impact, as sentiment had changed after the Reserve Bank of India's policy minutes showed policymakers were open to raising rates if inflation risks materialise and broaden.