Indian government bonds held steady early Tuesday as investors awaited the weekly state debt supply and closely monitored the growing prospects of a trade deal with the United States.

The benchmark 10-year bond (IN063335G=CC) yielded 6.4919% at 10:20 a.m. IST, slightly above Monday’s close of 6.4883%, which was the lowest level since October 15. Bond yields move inversely to prices.

U.S. President Donald Trump indicated that Washington was close to reaching a trade deal with India, potentially expanding economic and security ties. Traders noted that this development could influence the Reserve Bank of India’s rate easing trajectory. Continued purchases by the RBI in the secondary market are seen as crucial for supporting demand.

Investors categorized as “others” — including corporates, insurance companies, pension funds, and the central bank — net bought bonds worth ₹239 billion ($2.72 billion) over the last five trading sessions.

Indian states are also set to raise ₹165.60 billion through bond sales later in the day, a key gauge of investor appetite for debt. Additionally, investors are awaiting October retail inflation data, expected to show a slowdown to 0.48% from September’s 1.54%, the lowest in the current series.

OIS Rates:

• 1-year OIS: 5.4750%
• 2-year OIS: 5.4550% (down 1 bp)
• 5-year OIS: 5.72% (flat)

Currency: $1 = ₹88.695.