India bonds inch up before state debt supply, US rate decision
government bonds
edged higher in early deals on Tuesday after a two-day selloff, while volumes remained muted ahead of the
state debt supply
and the U.S. rate decision due a day later.
The yield on the benchmark 10-year bond was at 6.3631% at 10:25 a.m. IST, compared with the previous close of 6.3700%.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Bond yields
move inversely to prices.
Bonds Corner
Powered By
India bonds inch up before state debt supply, US rate decision
Indian government bonds saw a slight increase in early trading on Tuesday, recovering from a two-day selloff, though trading volume remained low. Investors are awaiting state debt supply details and the U.S. Federal Reserve's rate decision. The focus is also on RBI policy decisions and U.S. Fed Chair Jerome Powell's commentary for cues on the domestic policy easing cycle.
Retail investors are waking up to bonds—here's why it matters, says Vineet Agarwal
Fixed income isn't just for retirees, it belongs in every portfolio: Jiraaf's Vineet Agarwal
How Bond duration impacts return in a falling rate regime, Gautam Kaul explains
Corporate bonds meet arbitrage: a smarter, tax-efficient play for fixed income investors
Browse all Bonds News with
Traders said the benchmark bond yield was unable to break past a key technical upside level, so there is some reversal in trend.
Investors took a break from selling, which was triggered by falling bets of an immediate rate cut following hawkish commentary from the
Reserve Bank of India
Governor Sanjay Malhotra.
Live Events
On Friday, Malhotra said that the
monetary policy
will place greater emphasis on the outlook for growth and inflation, rather than their current levels.
"Traders are mostly on the sidelines till the RBI policy decision as there is no incentive for taking positions," a trader at a state-run bank said.
"Focus is on U.S. Fed Chair Jerome Powell's commentary, which could give more cues on domestic policy easing cycle for FY25."
The
Federal Reserve
is widely expected to keep
interest rates
unchanged on Wednesday.
Meanwhile, Indian states are aiming to raise 300 billion rupees ($3.46 billion) via
bond auctions
later in the day, slightly exceeding the scheduled amount.
RATES
India's overnight index swap (OIS) rates saw receiving pressure in early trades, as the 10-year bond yield failed to breach key technical level, spurring some buying.
The one-year rate dropped 2 basis points to 5.52%, while the two-year OIS rate fell 2 basis points to 5.50%. The liquid five-year OIS rate was down 1 basis point at 5.73%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
20 minutes ago
- Time of India
Trade war: Tariffs notified, government hardens its position on no-go areas
NEW DELHI: On a day when US notified additional levies for countries, with 25% imposed on Indian exports, govt hardened its position asserting that farm and dairy products, genetically modified food, beef and animal feed with meat are no-go areas. Without being confrontational, govt sources made it clear that cultural sensitivities and farmers' interest will be paramount in talks with the US and indicated India's willingness to move ahead with talks, with the next round scheduled to begin on Aug 25. "We are engaged with American officials and securing our national interest is our primary objective. Govt is not going to come under pressure on areas that concern farmers and small businesses," said an official. While there is bound to be some impact on India's exports, sources said that it may shave off around 0.2 percentage points from GDP this year and there may not be a significant impact over the economy. The assessment is based on calculations that a significant part of India's exports to US - $20-25 billion out of overall exports of $86.5 billion last fiscal - was outside the ambit of tariffs notified through US President Donald Trump's executive order, issued early Friday (India time). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Emergency Generators in Miraflores: (Prices May Surprise You) Emergency Generator | Search Ads Search Now Undo In 2024-25, pharma exports were a little under $10 billion, while oil products added up to $4.2 billion and electronics were estimated at over $13 billion, made up largely of smartphones, according to official from medicines, the exemptions include Active Pharmaceutical Ingredients, electronics and ICT products such as semiconductors, smartphones and computers and energy products. The US tariffs will now be effective Aug 7 and the penalty for Russian arms and defence purchases was not part of the executive order issued by Trump, indicating he is seeking to use it as a threat to extract a deal to his liking from India. It also said that Indian shipments that are in transit before Aug 7 - and arrive at US ports before Oct 5 - will not face the additional tariff, providing some relief to are seeking sops from govt to tide over possible loss of orders, especially in sectors such as textiles, footwear and chemicals. Commerce and industry minister Piyush Goyal is slated to hold consultations with exporters over the next few days. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Hindustan Times
37 minutes ago
- Hindustan Times
Donald Trump says he heard India may stop buying oil from Russia: 'Good step'
US President Donald Trump on Saturday said that he had heard that India might no longer buy oil from Russia, though he acknowledged he was not certain about the claim. U.S. President Donald Trump waves as he arrives at Lehigh Valley International Airport in Allentown, Pennsylvania, U.S., August 1, 2025.(Reuters) "I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens," Trump told ANI. Trump's remarks come days after his tirade against India for buying Russian oil and the White House's decision to levy 25 per cent tariffs on all exports to America and an unspecified additional 'penalty' for purchasing Russian energy. In a post on Truth Social, Trump criticised India for maintaining the world's highest tariffs and 'obnoxious' trade barriers while continuing to buy Russian military equipment and energy during the Ukraine war. On Friday, external affairs ministry spokesperson Randhir Jaiswal defended India's procurement of energy and defence hardware from Russia, saying New Delhi and Moscow have a 'steady and time-tested partnership'. 'India and the US share a comprehensive global strategic partnership anchored in shared interests, democratic values and robust people-to-people ties. This partnership has weathered several transitions and challenges,' Jaiswal said in response to several questions regarding Trump's tariff policy. Also Read | US sanctions 6 Indian companies for engaging in petroleum trade with Iran 'We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward,' he said. He also pointed to the potential for growing the 'strong defence partnership' with the US and highlighted that India's ties with the US had overcome several challenges and New Delhi is committed to taking the relationship forward.
Time of India
2 hours ago
- Time of India
Instant answers: India's fintechs harness GenAI
Bengaluru: Generative AI is rewriting the rules of finance, and nowhere is the upheaval sharper than in India's booming fintech scene. Brokerage chatbots that speak four languages, payment assistants that fix errors in seconds, and back-office engines that close two-hundred-million credit accounts before dawn are steadily stripping cost and friction out of money management—and propelling a new breed of startups onto the world stage. Tired of too many ads? go ad free now That momentum explains why Tiffany Bloomquist, who runs the startups business for Amazon Web Services (AWS) across Asia-Pacific and Japan, now touches down in India almost every quarter. Meeting founders in Bengaluru during a recent visit, she said GenAI has quickly become the fastest route to improving customer experience and urged entrepreneurs to weave the technology into every layer of their products. Three local tail-winds, she said, are fuelling the surge. F irst, the govet's India Stack gives developers ready-made digital rails for identity, payments and data-sharing. Second, Nasscom counts more than 240 Indian GenAI startups today, up from just 66 early last year. Third, AWS's ten-week GenAI Accelerator—supported by a $230 million fund—offers up to $1 million in credits, matches mentors and organises brisk "speed connect" meetings with big corporate buyers. Seven Indian firms have already won places on the current cohort. What, then, are those firms actually doing? Stock-broking platform Dhan, serving roughly three million traders, was drowning in know-your-customer (KYC) checks. By training a language model on its own policy documents, it now answers a quarter of those queries automatically, halving average wait times and cutting support costs by nearly a third. Tired of too many ads? go ad free now Payment specialist Easebuzz faced merchants who repeatedly rang in with integration snags. Its new assistant, ERA, reads each message, compares it with technical manuals and suggests step-by-step fixes in real time. Redundant tickets have dropped by 80% and responses that once took 20 minutes arrive in seconds. At banking tech company Zeta, the numbers are bigger still. Every night the firm must post millions of transactions that merchants queue during the day. A cloud-based processing engine—reinforced with AI routines that predict the heaviest bursts—now reconciles 208 million credit accounts in about 40 minutes, a feat that would once have demanded a nine-figure hardware budget. Debt-marketplace Yubi uses large-language models to refresh credit scores. Feeding the software a lake of public filings and bank statements lets risk models update in hours rather than days, trimming a third off the time borrowers wait for funding offers. The common recipe is simple: distil company knowledge into an AI model, surface it through a chat-style interface and run it on servers that expand only when the rush arrives. "We used to automate servers," Bloomquist said. "Now we're automating compliance, advice, and trust. Founders who seize that shift will shape the next decade of finance."
