FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The Indian government bonds rose for the second straight session Tuesday, following rally in U.S. Treasuries after the 'Trump trade' news on the Trans-Pacific Partnership unveiled on Monday, which clouded the debt market outlook.
Also, investors will be looking forward to a host of state bond auctions, to be conducted by the Reserve Bank of India later in the day.
The yield on the benchmark 10-year bonds, which moves inversely to its price, fell 1 basis point to 6.44 percent, the yield on medium-term 13-year note fell 1-1/2 basis points to 6.76 percent while the yield on short-term 2-year note moved down 1 basis point to 6.31 percent by 07:30 GMT.
Further, the U.S. Treasury Secretary nominee Steven Mnuchin talked about stopping currency manipulation and that an excessively strong dollar is likely to pose threats to the domestic economy.
Moreover, the RBI is auctioning total 18 State Developments Loans (SDLs) of maturity 10 years maturity,15 years maturity for Maharashtra,Puducherry,19 years maturity for Odisha,5 years maturity for Maharashtra (Reissuance of 6.92% Maharashtra SDL 2022 price based),for an aggregate amount of Rs 205.39 billion on 24th January 2017.
The last auction held on the January 10 witnessed the cut off yields at 7.10-18 for 10 year maturity loans. SDL spreads in the auction were 70-78 basis points. Lastly, market participants are looking forward to the Reserve Bank of India’s first bi-monthly monetary policy meeting of 2017, scheduled to be held on February 7.
It is worth noting that the benchmark 10-year yields fell nearly 160 basis points to 6.18 percent in 2016 as subdued inflation and negative impact of demonetisation raised expectations for the RBI rate cut. We at FxWirePro expect this is also likely to continue even in 2017.
Meanwhile, the 30-share benchmark Sensex traded 0.43 percent higher at 27,229.48, while the 50-share benchmark Nifty futures traded 0.56 percent or 46.60 points up at 8,437.80 by 07:50 GMT.
