India bonds to consolidate after selloff as traders digest oil risks
TLT•Overnight indexed swap rates seen rangebound
India's overnight indexed swap rates may remain rangebound, as softer U.S. yields counter pressure from rising oil prices.
The one-year INR1YMIBROIS=CC swap ended at 5.83% on Tuesday, the two-year INR2YMIBROIS=CC at 6.0550%, and the liquid five-year INR5YMIBROIS=CC at 6.42%.
RBI minutes and swap-facility pullback in focus
The RBI minutes due later in the day may offer guidance, although the geopolitical backdrop has shifted since the meeting.
Sentiment has weakened since the RBI brought forward the deadline for its discounted swap facility for banks hedging diaspora deposits, which has drawn over $50 billion and bolstered system liquidity.
"Best to stay light and see what happens on the global front before taking decisive positions," the private-bank trader said.
