Indian Bond Yields Hold Steady as Market Awaits Crucial Debt Auction

Indian government bond yields are expected to remain stable on Friday ahead of a significant debt auction. The benchmark 10-year yield is likely to trade in a narrow range of 6.70%-6.73%, compared to its previous close of 6.7103%. The government aims to raise 390 billion rupees ($4.50 billion) through bond sales, including 220 billion rupees of benchmark paper. Investors are closely watching for potential liquidity infusion announcements from the RBI, which has already purchased bonds worth 988.35 billion rupees in recent weeks. The central bank's ongoing efforts to manage liquidity, including a scheduled 49-day repo auction for 750 billion rupees, continue to influence market sentiment.
Sources: Reuters, TradingView, Moneycontrol