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Yields Rise In Risk On

INR
  • Yields slightly higher in early trade as equity markets gain. Yields fell yesterday as the global bond rout partially reversed, data showed state banks were buyers of Indian bonds to the tune of INR 500bn yesterday, after selling $5.7tn on Friday last week.
  • Also helping a bid in the space was a report from the finance ministry that goods and services tax collections in February was 7% higher Y/Y at INR 1.13t , which could help assuage worries of financing the budget through extra issuance.
  • Markets await state bond sales to the tune of INR 230bn today which has impacted the sovereign space.
  • It was announced yesterday that the RBI will sell four lines via auction on March 5 for a total INR 310bn.
    • INR 30bn 3.96% 2022
    • INR 120bn 5.15% 2025
    • INR 120bn 5.85% 2030
    • INR 40bn FRB 2033

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