U.S. yields fell on Tuesday after data showed job openings in February dropped to the lowest level in nearly two years, implying the labour market is finally cooling and could allow the Federal Reserve to loosen its grip on the monetary policy. The two-year yield dropped over 20 basis points in the last two sessions and was at 3.86%, while the 10-year yield eased by 15 bps and was last at 3.36%. The RBI is expected to raise the interest rate by 25 bps to a seven-year high of 6.75%.
The central bank had raised the repo rate by 250 bps to 6.50% in the previous financial year to fight inflation.
Meanwhile, New Delhi will raise 320 billion rupees ($3.90 billion) through the sale of Treasury bills, while Indian states are set to raise 30 billion rupees via debt sale later in the day.
The government will also start this year's borrowing programme on Thursday by selling bonds worth 330 billion rupees, which includes a five-year paper.
Traders will also keenly track the movement in oil prices, especially after the OPEC+ announced an additional production cut. The benchmark Brent crude futures were trading over $85 per barrel. ($1 = 82.0730 Indian rupees) (Reporting by Dharamraj Dhutia; Editing by Sohini Goswami)
