FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The Indian government bonds gained on Wednesday as investors increased and opened new position amid rising expectations that the government will pass the long-awaited GST (Goods and Service Tax) bill in this monsoon session of the parliament. Also, investors remained cautious ahead of the appointment of the new RBI governor.
The yield on the benchmark 10-year bonds, which moves inversely to its price fell more than 1 basis point to 7.269 percent, the yield on super-long 30-year bonds dipped 2 basis points to 7.575 percent and the short-term 3-year note yield down 1 basis point to 6.947 percent by 07:00 GMT.
Last week, India’s road transport and highways minister, Nitin Gadkari said that the parliament will pass GST bill in the ongoing parliament session.
Moreover, the International Monetary Fund (IMF) lowered India’s economic growth forecast to 7.4 percent (lower 0.1 percentage points), from 7.5 percent in its previous forecast, which boosted risk-haven buying among investors.
In addition, investors await the announcement of the new RBI chief in the Parliament. Markets anticipate the declaration of the new Governor to happen in the monsoon session of the Parliament.
In terms of latest economic data release, India’s wholesale price index (WPI) inflation surged to 20-month high in June, indicating that the Reserve Bank of India (RBI) would not ease its key policy rate immediately. India’s wholesale prices, as measured by the wholesale price index (WPI) for the month of June, surged on rise in food and fuel prices, which has raised concerns that the RBI may not be able to slash rates at the upcoming policy meeting. The RBI has targeted to reach inflation at 5 percent by March 2017, to necessitate an easing bias.
The Indian WPI inflation jumped to 1.6 percent y/y in June, higher than the market consensus of 1.19 percent, as compared to 0.79 percent in May. The rise in inflation was majorly driven by the higher price of petrol, diesel, kerosene, LPG, furnace oil and aviation turbine fuel.
Moreover, the consumer inflation rose 5.77 percent in June, a bit higher than the market consensus of 5.73 percent, as compared to 5.76 percent in May.
According to Reuters, the RBI will auction four bonds worth 150 billion rupees on July 22, including 80 billion rupees of the benchmark bond and will auction 91-day and 364-day treasury bills worth 150 billion rupees today.
Meanwhile, the Sensex rose 0.27 percent or 76.20 points to 27,863.82 and Nifty-50 futures trading 0.24 percent higher or 20.10 points at 8,573 by 07:30 GMT.
