Bond Yields Rise 1 Bps as Traders Brace for Rs 48,615-Crore State Debt Auction

• Indian bond yields opened 1 basis point higher on February 10, ahead of a Rs 48,615-crore state debt auction.
• This auction marks the largest weekly issuance of the year so far.
• The benchmark yield fell to 6.7469% after closing at 6.7559% in the previous session.
• Traders had anticipated more liquidity operations from the Reserve Bank of India (RBI) in the recent monetary policy review.
• A surplus of bond supply has outpaced demand, prompting the RBI to purchase government securities to control rising yields, though no new bond-buying signals emerged.