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Cash Curve Cheapens Ahead Of Supply

INDIA

Selling seen across the curve in India ahead of INR 310bn of supply today from 1-year to 40-year. 10-Yearyield rises back above 6.00%, last 6.049%.

  • There is still chatter the RBI is active in the secondary market, and there are reports doing the rounds that India is considering lower its borrowing amount in the first half of the next fiscal year to help ease pressure on the bond market. Bloomberg cite sources on the information, and add that borrowing will be decided based on redemptions. For context there are INR 7.2tn worth of redemptions in the next FY
  • Global debt has sold off this week, and Indian debt has not been immune, which could present some challenges at the upcoming auction.

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