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Indian bond yields soften as traders turn cautious ahead of weekly debt auction
Indian government bonds weakened slightly ahead of the weekly auction as traders reacted to sticky inflation signals and softer central bank purchases.
Indian government bonds drifted lower in quiet trading as investors adopted a cautious stance ahead of the upcoming weekly debt supply auction. Market participants cited concerns around sticky core inflation, subdued RBI secondary-market purchases, and lingering uncertainty about the near-term policy trajectory. Traders also observed that demand may remain uneven across maturities given global rate volatility and shifting foreign fund flows.
Despite the mild decline, analysts noted that stable liquidity and controlled fiscal conditions continue to provide medium-term support for India’s sovereign debt market.