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State Auctions In Focus

INDIA

Bonds are expected to open weaker today, retracing yesterday's move higher as US yields and crude prices rise.

  • Yields fell yesterday as markets assessed the implications of Friday's cancelled 10-year auction, while the conversion offer and SLTRO also helped subdue yields.
  • Markets will watch for demand at today's INR 105bn state debt sale, though a day of record deaths and over 260k new cases of coronavirus continue to put efforts against the pandemic in focus. As well as coronavirus India is currently dealing with a severe cyclone that has made landfall on India's west coast, an area home to major refineries and ports.
  • The rupee is expected to open slightly higher today after declining yesterday, 1-month NDF's last at 73.66, down 0.03 on the session. After the cash close 1-month NDF's rose as high as 73.80 yesterday.

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