Mumbai: The results of the 10-year bonds of India’s benchmark rose in the liquid trading on Monday as expectations for the 10-year-old issue rose while the increase in global crude oil prices also burdened sentiments.
Results in most other bonds are mostly flat because the traders are waiting for an announcement of auction Monday for a week.
RS 26,000 Crore Debt for sale will include Rs 14,000 Crore in a 10-year paper, although it is not clear whether this will be in the form of new problems, or the latest reopening.
The 10-year bond waste benchmark closed at 6.09%, the highest since April 20 and rose 3 basis points on that day.
The 6.64% 2025 paper which was most traded ended at 6.73%, down 1 basis point that day.
“The 10-year bond has become truly liquid.
RBI (Bank of India’s reserve) will issue 10 new years this week,” said a senior trader at a private bank, added that the uptick in oil prices was also sick.
Oil prices rose on Monday, driven by disagreements about output policies that caused the third day of talks to try to break the deadlock among producers in the OPEC + group.
On Friday, RBI said in the future it would sell 10-year benchmark bonds and several other records using uniform price-based auction methods, in an effort to prevent traders that were too far above market results.
Traders said the RBI has also written to the main dealer and the guarantor of the auction to set an acceptable supply limit and the maximum commission to be paid to underwriters.
So far this year, the RBI has been fully or partially canceled – or the underwriter for auction must buy – Rs 1.16 lakh crore bonds, which reflect the Kenness RBI to maintain the results of check.
“Uniform price-based auctions will be positive on auction day and will help create a better demand at auction,” said Harish Agarwal, a permanent income trader in the First Rand Bank.
After the market closed, RBI said he would buy bonds worth RS 20,000 Crore on July 8 under the acquisition program of government securities 2.0 or a version of quantitative easing.