MUMBAI, Aug 12 (Reuters) - India’s weekly debt auction on Friday is expected to witness strong bidding, as traders anticipate a softer inflation print for July which would help ease pressure for rate rises, traders said. ** Reserve Bank of India to auction bonds worth 320 billion rupees ($4.02 billion)
** Auction includes 7.38% 2027, FRB 2028, 7.54% 2036 and 6.99% 2051 papers.
** "After strong rally, we have seen some correction in bond prices today, so investors will look to enter especially in the 14-year segment," a trader with a primary dealership says. ** Market participants expects cutoff yields for the liquid 2027 and 2036 notes around 6.98% and 7.52% respectively. ** RBI had partially devolved FRB 2028 bond at its previous auction on Jul. 29, and traders do not rule out similar possibility on Friday. ** Inflation data < INCPIY=ECI> is due on Friday. Reuters poll shows July inflation may drop to 6.78% from 7.01% in the prior month and eight-year high of 7.79% in April. ($1 = 79.6650 Indian rupees) (Reporting by Dharamraj Lalit Dhutia)
