India’s new 10-year government bonds face selloff ahead of auction, June 5 emerges as a key risk date

⑴ India’s newly issued 10-year 6.94% 2036 government bond faced heavy selling pressure on Monday, as its auction coincided with an already event-packed trading day, triggering cautious market sentiment. The bond yield rose nearly 3 basis points to 7.0034%, while the benchmark 2035 government bond yield stood at 7.0193%.⑵ New Delhi is scheduled to issue 340 billion rupees (approximately USD 3.58 billion) worth of 10-year government bonds on Friday. On the same day, the Reserve Bank of India will announce its monetary policy decision, and last year’s economic growth data will also be released.⑶ A trader at a state-owned bank stated that, judging from the event schedule alone, the market may experience intense volatility and extreme fluctuations. The trader suggested it is best to proceed with caution rather than aggressively increase long positions before June 5th.