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Outflows Pressure Indian Assets

INDIA

Yields rose and the rupee fell yesterday as dollar demand triggered outflows, the move was blamed on outflows of nearly $1 billion across corporates and exacerbated by backlogs due to the closure of US markets on Monday. Indian state governments sold INR 144.8b of bonds, less than the INR 147.3b planned. Indian assets could come under further pressure today thanks to a move higher in US yields. Participants look ahead to an INR 170bn bill sale today. Looking further ahead the RBI will conduct a bond auction tomorrow, while the highlights of the economic docket next week include industrial production, CPI and trade data.

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