FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The Indian government bonds plunged Monday as investors were reluctant to purchase safe-haven assets ahead of Reserve Bank of India’s monetary policy meeting. Also, upbeat US payroll data discouraged traders from risk-free instruments.
The yield on the benchmark 10-year bonds, which moves inversely to its price, rose 1-1/2 basis point to 7.185 percent, the yield on super-long 30-year bond also jumped 2 basis points to 7.387 percent and the short-term 2-year note yield climbed 1/2 basis point to 6.849 percent by 07:10 GMT.
Markets await the announcement of the new RBI chief, which is anticipated to happen in the ongoing monsoon session of the Parliament.
We foresee that the RBI will keep its key policy interest rate unchanged on Tuesday’s monetary policy meeting in the wake of higher retail and wholesale inflation reading. Also, uncertainties surrounding global economy after Britain voted to leave the European Union will keep the RBI on pat.
Moreover, the July US Labour Department employment situation report revealed a considerable +255k increase in non-farm payrolls, which comes well above market expectations for a +180k increase, as compared to the revised +292k result that occurred in June (previous was +287k). This comes alongside no change in the unemployment rate at 4.9 percent, above expectations for a 4.8 percent result.
We expect that it is likely to be difficult for the investors to find any dovishness in this report, keeping alive September 21 Fed hike expectations (Bloomberg’s implied probability is at 26 percent).
According to Reuters, Twelve state governments are raising at least 122.50 billion rupees by selling five and 10-year bonds today. Traders expect strong demand at the auction.
Meanwhile, the Sensex rose 0.29 percent or 82.34 points to 28,160.69 and Nifty-50 futures trading 0.47 percent higher or 41 points at 8,746.75 by 07:40 GMT.
