By IndiaHub 
The yields were little changed on Friday, with focus on fresh debt supply through a weekly auction followed by the country’s latest growth data.
The yield on the new benchmark 10-year bond was at 6.1806% as of 10:00 a.m. IST, compared with the previous close of 6.1794%. The paper was issued at 6.33% on May 2 and jumped to 6.40% in the following week.
JPMorgan Chase CEO Jamie Dimon advocates for taxing carried interest, aligning with Donald Trump’s efforts to close the loophole benefiting private market investors. Dimon suggests using the additional revenue to double income tax credits, benefiting communities and families. He also cautioned about a potential “crack in the bond market” due to government overspending and quantitative easing.
The most liquid and former benchmark 2034 bond yield was at 6.2491% after settling at 6.2518%. It had hit a high of 6.44% during the month.
The 10-year bond yield fell by 14 bps and 22 bps in March and April, respectively.
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New Delhi will sell benchmark bonds worth 300 billion rupees ($3.52 billion), which will double its outstanding amount and make it more liquid. “Auction demand and growth data will be key driver for the direction of yields till the central bank’s policy next week,” a trader with a mutual fund said. India’s economic growth data for January-March is due on Friday, with economists estimating growth of 6.7%, versus 6.2% in the prior quarter.
The Reserve Bank of India is widely expected to deliver a third straight 25-basis-point rate cut on June 6. Traders anticipate bond yields to decline further.
The RBI has cut rates by 50 bps in 2025 and has infused around $100 billion into the banking system since December.
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Overnight index swap (OIS) rates eased marginally. The one-year OIS was down 3 bps at 5.54%, while the two-year OIS rate was also down 3 bps at 5.463%. The most liquid five-year dipped 2 bps to 5.62%. ($1 = 85.2920 Indian rupees)