Indian bonds fell nearly 4 basis points on February 20, snapping a winning streak from earlier this week, after a recently concluded government debt switch made market participants believe that any other liquidity cooling measures were unlikely.
The benchmark Indian bond yield rose to 6.711 percent, as compared to 6.6780 percent on Wednesday. The currency and fixed income markets were closed on Thursday due to a public holiday.
Earlier in the week, the Indian government conducted a second debt switch with the Reserve Bank of India (RBI), that could reduce the gross borrowing number for the upcoming fiscal year.
“Bond yields have shown a mixed trend recently with supply pressures but also some stability due to RBIs consistent interventions by buying bonds in primary/secondary markets,”
Investors are now awaiting the government’s Rs 33,000 crore debt supply auction later during the day for more cues. Persistent supply concerns have continued to weigh on investor sentiment for the last few trading sessions.
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