India bonds seen steady ahead of RBI's debt sale, liquidity moves
ADVERTISEMENT The yield on the benchmark 10-year bond is likely to trade between 6.30% and 6.33%, a trader at a private bank said, after closing at 6.3010% on Thursday. The five-year 6.75% 2029 bond ended at 5.9704%.
New Delhi will sell bonds worth 270 billion rupees ($3.14 billion), which includes a new five-year paper and a 30-year bond. The cutoff for the five-year bond would provide insight into the appetite for shorter-duration papers.
"There was some relief rally yesterday as foreign banks entered after rate cut bets strengthened," the trader said. "But we could be back to rangebound trades today due to debt sale and higher quantum of reverse repo from the Reserve Bank of India (RBI)." The RBI will conduct a seven-day variable rate reverse repo (VRRR) auction for 2 trillion rupees against a similar maturing amount.
ADVERTISEMENT Market participants, however, were anticipating a lower amount as outflows for goods and services tax would start from Friday. Overnight and short-term rates have risen since the central bank started the VRRRs three weeks ago.
ADVERTISEMENT
Meanwhile, bets for interest rate cuts have started rising after retail inflation slipped to 2.10% in June, the slowest pace in more than six years, down from 2.82% in May. An estimated drop in inflation to a record low in July is prompting calls for at least one more rate cut this year. RATES India's shorter duration overnight index swap rates (OIS) are expected to see paying pressure due to aggressive cash withdrawal from the RBI.
ADVERTISEMENT The one-year OIS rate ended at 5.51% and the two-year OIS rate at 5.48%. The liquid five-year finished at 5.7250%. ** Benchmark Brent crude futures little changed at $69.50 per barrel after rising 1.5% on Thursday
ADVERTISEMENT ** Ten-year U.S. Treasury yield at 4.4443%; two-year yield at 3.9170% ** India to auction sovereign bonds worth 270 billion rupees ** RBI to set underwriting fees for sovereign bond auction worth 270 billion rupees
** RBI to conduct seven-day variable rate reverse repo auction worth 2 trillion rupees ($1 = 85.9940 Indian rupees).
(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


Hans India
6 minutes ago
- Hans India
India's GDP to grow at 6.5 pc in 2025, robust 6.7 pc in 2026: ADB
The Asian Development Bank (ADB) on Wednesday said that India's GDP growth is projected to grow at 6.5 per cent in 2025, and a robust 6.7 per cent in 2026, amid strong domestic demand, a normal monsoon and monetary easing in the country. When it comes to inflation, the country is likely to clock 3.8 per cent inflation this year, followed by 4.0 per cent in 2026 -- well within the reach of the Reserve Bank of India (RBI) projections, ADB said in a statement. In India, falling food inflation also helps contain headline inflation. Consumer Price Index (CPI) inflation slid to 2.1 per cent in June, the lowest in 77 months, as food inflation turned negative. India's real GDP growth is projected to grow in a range of 6.4-6.7 per cent this fiscal, reinforcing the country's position as the fastest-growing major economy in the world, the Confederation of Indian Industry (CII) said earlier this month. Meanwhile, the Asian Development Bank lowered its growth forecasts for economies in developing Asia and the Pacific this year and next year. The downgrades are driven by expectations of reduced exports amid higher US tariffs and global trade uncertainty, as well as weaker domestic demand. ADB forecasts the region's economies will grow by 4.7 per cent this year, a 0.2 percentage point decline from the projection issued in April. The forecast for next year has been lowered to 4.6 per cent from 4.7 per cent, according to Asian Development Outlook (ADO) July 2025. Prospects for developing Asia and the Pacific could be dented further by an escalation of US tariffs and trade tensions. Other risks include conflicts and geopolitical tensions that could disrupt global supply chains and raise energy prices, and a worse-than-expected deterioration in the property market of the People's Republic of China (PRC). 'Asia and the Pacific have weathered an increasingly challenging external environment this year. But the economic outlook has weakened amid intensifying risks and global uncertainty,' said ADB Chief Economist Albert Park. 'Economies in the region should continue strengthening their fundamentals and promoting open trade and regional integration to support investment, employment, and growth,' Part mentioned. Growth projections for the PRC, the region's largest economy, are maintained at 4.7 per cent this year and 4.3 per cent next year. Economies in Southeast Asia will likely be hardest hit by worsened trade conditions and uncertainty. ADB now predicts the subregion's economies will grow 4.2 per cent this year and 4.3 per cent next year, down roughly half a percentage point from April forecasts for each year.


India.com
6 minutes ago
- India.com
Meet man, an Indian, who manages the finances of the world's richest person Musk, earns Rs 11500000000 salary, not from IIT, IIM, name is....
Meet man, an Indian, who manages the finances of the world's richest person Musk, earns Rs 11500000000 salary, not from IIT, IIM, name is.... Elon Musk is the richest person in the world. His electric car company, Tesla, has recently entered the Indian market. While Musk's companies have thousands of employees, he chose Indian-origin Tesla executive Vaibhav Taneja as treasurer and custodian of records for Musk's newly launched political party, called the 'America Party'. Before getting the role f Treasurer, Taneja was the CFO (Chief Financial Officer) of Tesla. This means that Vaibhav is in charge of all the finances, not just for Tesla, but also for Musk's political ambitions. He has been working with Musk since 2017, and over the years, Musk has kept giving him more and more key responsibilities. Who is Vaibhav Taneja, the Indian behind Tesla's finances Vaibhav Taneja comes from India. He studied Commerce at Delhi University and finished his degree in 1999. The next year, in 2000, he became a Chartered Accountant (CA). In 2006, he moved to the United States for higher studies and earned a CPA (Certified Public Accountant) qualification. Before joining Tesla in 2017, Vaibhav worked at SolarCity, which later became part of Tesla. Earlier, he spent almost 17 years at PricewaterhouseCoopers (PwC), where he helped over 500 clients with financial planning and IPO filings. In 2023, he was promoted to Chief Financial Officer (CFO) of Tesla. In 2024, he earned a total salary of about USD 139.5 million, which is roughly Rs. 1,157 crore in Indian currency. What's interesting is that his base salary was just USD 400,000, but most of his earnings came from Tesla stock options and equity awards, which made his total income much higher. Apart from being Tesla's CFO, Vaibhav is also the Director of Tesla India Motors and Energy Pvt. Ltd. He plays a big role in growing Tesla's presence in India, and was closely involved in opening the company's first showroom in the country. Vaibhav also handles finances for Elon Musk's political party, called the America Party. As the Treasurer, he looks after donations, ensures financial transparency, and makes sure all money matters follow legal rules. From regular expenses to managing election funds, Vaibhav is responsible for it all. Elon Musk launches 'America Party' after breaking ties with Donald Trump After falling out with his former ally Donald Trump, Elon Musk has launched a new political group called the America Party. He shared the news on X (formerly Twitter), saying the party was created to challenge what he called America's 'one-party system.' Musk wrote, 'Today, the America Party is formed to give you back your freedom.' He also added, 'When it comes to wasting money and corruption, both parties act the same. It's not a real democracy — it's a one-party system.' On July 1, just after the Senate passed a new tax and spending bill, Musk posted: 'If this crazy bill is passed, I'll launch the America Party the very next day. Our country needs a real choice, not just Democrats and Republicans pretending to be different.'


India.com
6 minutes ago
- India.com
India's GDP To Grow At 6.5% In 2025, Robust 6.7% In 2026: ADB
New Delhi: The Asian Development Bank (ADB) on Wednesday said that India's GDP growth is projected to grow at 6.5 per cent in 2025, and a robust 6.7 per cent in 2026, amid strong domestic demand, a normal monsoon and monetary easing in the country. When it comes to inflation, the country is likely to clock 3.8 per cent inflation this year, followed by 4.0 per cent in 2026 -- well within the reach of the Reserve Bank of India (RBI) projections, ADB said in a statement. In India, falling food inflation also helps contain headline inflation. Consumer Price Index (CPI) inflation slid to 2.1 per cent in June, the lowest in 77 months, as food inflation turned negative. India's real GDP growth is projected to grow in a range of 6.4-6.7 per cent this fiscal, reinforcing the country's position as the fastest-growing major economy in the world, the Confederation of Indian Industry (CII) said earlier this month. Meanwhile, the Asian Development Bank lowered its growth forecasts for economies in developing Asia and the Pacific this year and next year. The downgrades are driven by expectations of reduced exports amid higher US tariffs and global trade uncertainty, as well as weaker domestic demand. ADB forecasts the region's economies will grow by 4.7 per cent this year, a 0.2 percentage point decline from the projection issued in April. The forecast for next year has been lowered to 4.6 per cent from 4.7 per cent, according to Asian Development Outlook (ADO) July 2025. Prospects for developing Asia and the Pacific could be dented further by an escalation of US tariffs and trade tensions. Other risks include conflicts and geopolitical tensions that could disrupt global supply chains and raise energy prices, and a worse-than-expected deterioration in the property market of the People's Republic of China (PRC). 'Asia and the Pacific have weathered an increasingly challenging external environment this year. But the economic outlook has weakened amid intensifying risks and global uncertainty,' said ADB Chief Economist Albert Park. 'Economies in the region should continue strengthening their fundamentals and promoting open trade and regional integration to support investment, employment, and growth,' Part mentioned. Growth projections for the PRC, the region's largest economy, are maintained at 4.7 per cent this year and 4.3 per cent next year. Economies in Southeast Asia will likely be hardest hit by worsened trade conditions and uncertainty. ADB now predicts the subregion's economies will grow 4.2 per cent this year and 4.3 per cent next year, down roughly half a percentage point from April forecasts for each year.