India's 10-Year Bond Yield Sees Initial Increase Ahead of Weekly Auction

India's Benchmark 10-Year Bond Yield Opens Higher Amid Rising Oil Prices

India's benchmark 10-year government bond yield opened marginally higher on May 8, driven by rising oil prices and attention on the upcoming weekly bond auction. At 9:05 am, the 10-year bond yield was trading at 6.959 percent, a 3 basis point increase from its previous close of 6.933 percent.

The market is closely monitoring the weekly bond auction to gauge demand for the new 10-year 2036 bond, which is scheduled for sale on Friday. According to the Reserve Bank of India, the government plans to sell Rs 34,000 crore worth of the new 2036 bond.

Rising oil prices, following renewed clashes between Iranian forces, have clouded hopes for a deal to end the 10-week conflict. Meanwhile, the US Supreme Court has dealt a setback to President Donald Trump's economic agenda by declaring his 10 percent global tariffs unlawful. This ruling comes months after the US Supreme Court vacated earlier tariff measures imposed by Trump.

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Foreign investors remained net buyers of Indian equities on May 7, purchasing shares worth Rs 2.68 billion on the NSE. However, foreign investors sold no sovereign bonds under available investment limits and withdrew Rs 2.01 billion from corporate debt markets.

According to CCIL data, state-run banks sold Rs 1.04 billion worth of sovereign bonds on May 7, while foreign banks purchased Rs 18.2 billion worth of bonds.

Bond Auction Comparison

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