The Government of India has announced the sale of three dated securities with a total notified amount of ₹32,000 crore. According to reports from Business Standard, the auction includes 6.03% GS 2029 for ₹11,000 crore, 6.68% GS 2033 for ₹11,000 crore, and 7.24% GS 2055 for ₹10,000 crore. The securities are being offered through a re-issue mechanism, indicating the government's strategy to raise funds through existing instruments.
Indian government bonds showed a slight recovery on Tuesday as traders covered short positions after a steep selloff, according to The Economic Times. The benchmark 6.48% 2035 bond yield was at 7.0964%, after shedding 3.7 basis points by 10:35 a.m. IST. This recovery comes after the 10-year yield jumped 7 basis points on Monday, marking its biggest rise in more than six weeks, tracking a selloff in U.S. Treasuries. The recovery reflects opportunistic buying as markets gauge the economic fallout of the prolonged U.S.-Iran war.
The auction will be conducted using multiple price method, as reported by Business Standard. Both competitive and non-competitive bids must be submitted in electronic format on the Reserve Bank of India Core Banking Solution (e-Kuber system) on May 22, 2026 (Friday). The government retains the option to retain additional subscription up to ₹2,000 crore against each security, providing flexibility in the final issuance amount.
Market concerns over the U.S.-Iran conflict and its impact on India's oil imports are keeping markets on edge, potentially delaying interest rate cuts, as reported by The Economic Times. Brent Crude futures stayed close to $100/barrel in Asian trade, even after U.S. President Donald Trump said he had paused a planned attack against Iran after Tehran sent a peace proposal to Washington. Bond traders remain wary that a sliding rupee could force an interest rate hike, with USD/INR crossing 96 points towards an early onset of the central bank's rate-hike cycle. Rating agency Moody's noted that sustained commodity inflation and rupee weakness may reduce room for further interest-rate cuts.
