Indian bonds drift with oil; inflation data in focus
TLT•Indian government bonds traded in a narrow range as Brent hovered around $98 a barrel and traders awaited US and Indian inflation data. The benchmark 2036 bond yield was 7.1752%, while October consumer inflation is expected to rise to 5.93% from 5.54%.
1. Bonds hold steady
Indian government bonds held in a narrow range early Monday as calmer oil prices supported sentiment and traders remained cautious ahead of US and Indian inflation data. The benchmark 6.94% 2036 bond yielded 7.1752%, little changed from Friday.
2. Oil and bond supply
Brent crude hovered around $98 a barrel. States were due to auction 290.5 billion rupees ($3.10 billion) of bonds later Monday, ahead of a local holiday that will close the debt market on Tuesday.
3. Inflation in focus
The benchmark yield fell 22 basis points last week, its steepest weekly decline in nearly seven years. October consumer inflation is expected to rise to 5.93% from 5.54% in September. Overnight index swap rates also fell in early trading.
