India has completed its gross borrowing for this financial year and raised 14.21 trillion rupees ($172.72 billion). The government aims to raise 15.43 trillion rupees in the next financial year.
Yields were lower, even as Indian states aim to raise 298.58 billion rupees on Monday, and the quantum is above the scheduled amount for the first time in seven months.
Indian markets will remain shut on Tuesday for a local holiday.
"Insurance companies and provident funds will easily absorb the higher supply, and hence that is not having any major negative impact on central government bond yields," a trader with a state-run bank said.
Demand for longer-end will also rise after the government raises the supply of Treasury Bills in March at a time when liquidity in the banking system is expected to slip into wider deficit.
Traders will continue to focus on the inflation trajectory after retail inflation jumped to 6.52% in January, while heatwave concerns will also be a key risk factor, Citi said in a note.
The Reserve Bank of India has raised the repo rate by 250
basis points since May 2022 to 6.50% and is widely expected to
hike by 25 bps in April.
($1 = 82.2730 Indian rupees)
(Reporting by Dharamraj Dhutia
Editing by Sonia Cheema)
