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Another Auction Cancelled As Yields Push Higher

INDIA

Friday's auctions were poorly received, the RBI didn't accept any bids for the 6.10% 2031 and sold only INR 150bn against an original target of INR 260bn. Yields were higher on the day after the RBI rate announcement where the MPC kept rates on hold, but the vote saw unexpected hawkish dissent. 10-Year yield rose to 6.24% on Friday, the highest since March. Short dated bonds are expected to come under pressure today as markets digest the RBI's announcement of an expanded VRRR plan to drain liquidity. There are no releases on the economic docket today markets await industrial production and CPI data later in the week.

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