India bonds poised to gain as oil slips; US midterms in focus

Business Recorder reported that Indian government debt was expected to start Monday on a stronger footing after crude eased from a six-month peak to roughly $111 a barrel. A private-bank dealer put the 6.94% 2036 bond’s likely yield range at 7.35% to 7.39%, below Friday’s close of 7.4139%.

The 10-year yield had declined by around 6 basis points during the latest week, after rising more than 70 basis points across the previous 10 weeks, its longest run of increases since at least 1998. Market participants are watching the November 3 US midterms and developments in US-Iran talks for signals on the conflict and oil, while banking-system funds remain a constraint: liquidity was close to neutral at 304 billion rupees on Thursday. DBS Bank said tighter domestic liquidity, alongside RBI efforts to manage INR volatility, was weighing on Indian rates.