Indian Government Bonds Rise on Strong State Debt Demand and RBI Liquidity Support

Indian government bonds rose as stronger-than-expected demand at state debt auctions and expectations of reduced long-term issuance boosted investor sentiment. States raised more funds than planned, with lower cutoff yields, supported by increased purchases from insurers, pension funds, and possibly the Reserve Bank of India. The RBI's liquidity infusion and bond-buying have contributed to favorable market conditions. Attention now turns to upcoming auctions, including a 320-billion-rupee 10-year benchmark bond sale, seen as a test of sovereign debt appetite.