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India bonds tread water ahead of large debt sale

source: news (news:india-et-markets)published 2026-07-17 05:01ingested 2026-07-17 08:06

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Foreign participation has also picked up, which should support the auction and keep primary-market demand healthy, they said.
Overseas investors bought about 16.5 billion rupees of bonds under the fully accessible route this week on expectations of a possible inclusion on the Bloomberg Index.
Indian government bonds traded sideways early Friday as traders awaited a significant debt auction. Oil prices remained range-bound, and U.S. Treasury yields offered some market stability. Foreign investors showed increased interest, supporting bond demand and the upcoming auction. Short-term interest rates rose as banking system liquidity tightened. The benchmark bond yield traded rangebound, reflecting current market conditions.
Foreign banks turned buyers on Thursday, snapping a three-session selling streak, net buying more than 50 billion rupees ($518.97 million) of bonds, CCIL data showed.
RATES
India's short-term overnight index swap rates rose as banking-system liquidity tightened. The liquidity surplus shrank to 832 billion rupees on Wednesday from 1.3 trillion rupees in the previous session. The 1-year was up 2 bps at 5.9150%, while the 2-year rate was flat. The 5-year rate was steady at 6.3425%.($1 = 96.3450 Indian rupees)
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