The yields of Indian State bonds should remain relatively unchanged at the start of the session on Tuesday, while operators are waiting for a new debt offer through a sale of obligations by the states.
The reference yield at 10 years from India is expected to evolve in a range of 7.16%-7.20%, after its last closure at 7.1790%on Friday, a merchant said to a primary merchant.
The Indian foreign exchange, bond and monetary markets were closed on Monday, the Maharashtra state government having declared a public holiday.
“It is unlikely that we are attending a major action, since American yields remain high and there are no other major trigger elements on the markets for the moment. The state could give indications on the appetite of investors, “said the trader.
The Indian States wish to raise 242.80 billion rupees (2.92 billion dollars) through a sale of bonds, which represents the highest amount for more than two months and slightly exceeds the planned amount.
The auction will be followed by a sale of obligations from the central government, by which New Delhi will raise 330 billion rupees, including 160 billion rupees of reference obligations.
American returns were slightly relaxed on Monday, before the publication of key economic data during the week, which could influence the decision of monetary policy of the Federal Reserve next week.
Nevertheless, the American yield at 10 years remained greater than 4.10 %, investors having reduced their bets on the calendar and the pace of Fed rate cuts in 2024, following a series of solid economic data In the past few days.
According to the CME Fedwatch tool, traders have reduced the probabilities of the first drop in Fed rates by March 43 %, compared to 81 % on January 12, while the probability of a decrease of 150 points Basic in 2024 fell to 47 %, against 91 % during the same period.
Participants in the market will also await the Union budget for the next financial year scheduled for February 1, where the government will aim to reduce the budget deficit by percentage of GDP to 5.30 % in 2024-25, compared to 5.90 % For the current year ending in March 2024, according to a Reuters survey. Key indicators: ** Brent drops from 0.1 % to 80 dollars per barrel, after an increase of 1.9 % during the previous session ** Yield of the US Treasury at 10 years at 4.1014 %, yield for two years at 4.3889 %.
** Thirteen states will raise 242.80 billion rupees by the sale of bonds
** The RBI will organize a variable rate auction over two days for 1.25 trillion of rupees ($ 1 = 83,0860 Indian rupees) (reported by Dharamraj Dhutia; edited by Dhanya Ann Thoppil).