India bonds flat as traders look ahead to RBI policy; liquidity ebbs
ADVERTISEMENT The yield on the benchmark 10-year bond was at 6.2993% as of 10:45 a.m. IST, compared with Monday's close of 6.2996%.
Bond yields move inversely to prices.
"Liquidity is a bit tight after 2 trillion rupees were parked in the central bank's VRRR auction, so we are not taking a view right now," a trader at a private bank said. India's banking system liquidity surplus stood at around 2.4 trillion rupees as on July 21, the lowest level in seven weeks, which has pushed up overnight rates. New Delhi will sell 300 billion rupees ($3.48 billion) of the benchmark 2035 paper on Friday.
ADVERTISEMENT The 10-year benchmark yield will likely oscillate between 6.29%-6.32% till the central bank policy announcement, traders said. The next monetary policy decision from the central bank is due on August 6, with some traders anticipating another rate cut.
ADVERTISEMENT The Reserve Bank of India slashed its key interest rate by 50 basis points last month, while changing its stance to "neutral" from "accommodative", which soured sentiment as market participants looked at the moves as limiting room for more easing. A lower-than-expected June inflation reading however, revamped expectations for further rate cuts. Retail inflation eased to 2.10%, the slowest pace in over six years.
ADVERTISEMENT RATES India's overnight index swap rates remained rangebound in early deals, with slight upward pressure after heightened receiving bias on Monday.
The one-year OIS rate inched up to 5.49%, while the two-year OIS rate was little changed at 5.46%. The liquid five-year OIS rate also edged higher to 5.69%.
(You can now subscribe to our ETMarkets WhatsApp channel)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
6 minutes ago
- Economic Times
Three Indian infra investment trusts eye $500 million debt in coming weeks, sources say
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Three Indian infrastructure investment trusts , including the National Highways Infrastructure Trust , are planning to raise up to 43 billion rupees ($499 million) through corporate bonds in the coming weeks, three sources familiar with the matter is in talks with merchant bankers and investors to raise around 15 billion rupees through three-year bonds, the sources, who did not want to be named because the discussions are private, said. Cube Highways Trust is likely to tap the market for about 10 billion rupees in debt, with maturities ranging between three and five IRB Infrastructure Trust is preparing for its debut bond issuance, targeting roughly 18 billion rupees through a dual-tranche offering with five and 10-year tenors. None of the infrastructure investment trusts , or InvITs, responded to Reuters emails seeking typically raise capital through a combination of units and issuances have gained traction in recent months amid falling yields. According to Prime Database, InvITs and real estate investment trusts (REITs) together raised more than 178 billion rupees in the January-June three InvITs are in discussions with investors, including the International Finance Corporation, which has previously invested in debt issued by several InvITs, including Cube Highways, according to a termsheet from an earlier last tapped the bond market in January, while Cube Highways raised funds through bonds in firms and pension funds participated in NHIT's previous bond offering, and the sources said they expect mutual funds to show interest this time, given that the tenor aligns with their investment horizon.($1 = 86.3825 Indian rupees)
News18
8 minutes ago
- News18
India-UK Deal, ‘Chai Pe Charcha', Cricket & EPL: PM Modi's Day Out With Starmer At Chequers
Curated By : Shankhyaneel Sarkar Last Updated: July 24, 2025, 21:46 IST Britain's Prime Minister Keir Starmer and Prime Minister Narendra Modi, have a cup of tea during a business showcase event at Chequers near Aylesbury, England. (IMAGE: REUTERS) Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer met at Chequers, the British PM's country residence, on Thursday for a business showcase event where the two leaders formally concluded the long-awaited India–UK Free Trade Agreement (FTA). The deal was signed after a high-level delegation meeting attended by top officials from both sides led by the respective prime ministers. The moment was marked by a casual yet symbolic tea break at a stall named 'Amala Chai," where PM Modi and UK PM Starmer were seen enjoying a cup of tea together. Shortly after the interaction, PM Modi shared photos from the event on X, writing: ''Chai Pe Charcha' with PM Keir Starmer at Chequers…brewing stronger India-UK ties! @Keir_Starmer." The gathering at Chequers also featured an interaction with players from the Buckinghamshire Street Cricket Hubs, highlighting the role of sport in building people-to-people connections. India and the UK are connected by a shared passion for cricket. At Chequers, PM Keir Starmer and I interacted with players from Buckinghamshire Street Cricket Hubs. Great to see sport fostering people-to-people ties between our nations. Also gave my young friends a bat signed… — Narendra Modi (@narendramodi) July 24, 2025 'India and the UK are connected by a shared passion for cricket," Prime Minister Modi said. 'At Chequers, PM Keir Starmer and I interacted with players… Great to see sport fostering people-to-people ties between our nations. Also gave my young friends a bat signed by the Indian cricket team which won the T20 World Cup." The tea and cricket-themed diplomacy followed the formal announcement of the FTA, a deal described as a milestone by both governments. Swipe Left For Next Video View all Modi said the agreement would enhance Indian exports in sectors such as textiles, footwear, gems, jewellery and seafood, while enabling Indian consumers to access British products like medical devices and aerospace components more affordably. He added that the deal would 'create new job opportunities" and benefit 'India's youth, farmers, fishermen, and MSMEs." Starmer called the FTA 'the most significant deal the UK has signed since leaving the EU," saying it would 'boost wages, raise living standards and put more money in the pockets of working people." He also said the agreement sends a clear message that 'the UK is open for business". Shankhyaneel Sarkar Shankhyaneel Sarkar is a senior subeditor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over five years of experience during which he has covered sev... Read More Shankhyaneel Sarkar is a senior subeditor at News18. He covers international affairs, where he focuses on breaking news to in-depth analyses. He has over five years of experience during which he has covered sev... Read More view comments News world India-UK Deal, 'Chai Pe Charcha', Cricket & EPL: PM Modi's Day Out With Starmer At Chequers Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
The Hindu
8 minutes ago
- The Hindu
AAI designs Master Plan for Puducherry Airport expansion
The Airports Authority of India (AAI) has developed a Master Plan for Puducherry airport with the provision for operation of A-320 class of aircraft, Union Civil Aviation Minister Kinjarapu Ram Mohan Naidu said in Parliament on Thursday (July 24, 2025). Responding to a question raised by Member of Parliament V. Vaithilingam on the status of expansion of the Puducherry airport, Mr. Naidu said that the AAI Master Plan envisaged an extended runway length of 2,300m and 45m width. The total additional land requirement will be 402 acres, out of which 217 acres are situated in Tamil Nadu and 185 acres are in Puducherry. The Master Plan has been shared with the Government of Puducherry, the Minister said. Responding to another part of the starred question, Mr. Mohan Naidu said the Puducherry airport was currently connected to Hyderabad and Bengaluru. To the MP's query on whether the Union government proposed measures for operating flights from Puducherry to Kochi and Shirdi in view of a large number of people travelling to these places, the Civil Aviation Minister said airlines were free to decide on markets/routes following the deregulation of the aviation sector in the country. 'With the repeal of Air Corporation Act in March 1994, the Indian domestic aviation has been deregulated. Airlines are free to induct capacity with any aircraft type, free to select whatever markets and network/route they wish to service, depending on their commercial and operational feasibility,' the Minister said in his reply.
