India bond selloff may continue as Treasury rout, fresh debt sale hurt
TLT•TLT•TLT•TLT•Indian government bonds may face further selling pressure on Friday as U.S. Treasury yields rise and investors prepare for a 340 billion rupee auction of benchmark 2036 bonds. The Indian benchmark yield was expected to trade between 7.23% and 7.28%.
India’s government bonds were likely to face selling pressure in early Friday trading as the Treasury selloff persisted ahead of a 340 billion rupee sale of benchmark 2036 bonds. The yield was expected to move between 7.23% and 7.28%, after ending Thursday at 7.2467%. The sale would take issuance of the security to 2.72 trillion rupees, the highest outstanding amount for any Indian security.
U.S. Treasury yields rose as traders weighed the chance of a larger-than-usual Federal Reserve rate hike next month. India’s annual retail inflation accelerated to 6.09% in October from 5.54% in September, above the 5.93% estimate cited in a poll. The Reserve Bank of India is expected to raise its key rate again in early December.
