* India will release current account data for July-September on Monday amid expectations it will show a record high deficit, sending the balance of payments into negative territory.
* Global risk factors will also be key for Indian debt and FX markets as U.S. lawmakers continue negotiations over the "fiscal cliff": failure to clinch a deal may send the dollar sharply higher.
* However, hopes for interest rate cuts in January will gather steam in the new year.
* RBI will also issue its T-bills issuance calendar for the Jan-March quarter, which will be watched closely to see whether RBI funds its extra borrowing with shorter-term paper.
* Indian markets will remain open on Jan. 1.
KEY FACTORS/EVENTS TO WATCH:
Monday: July-Sept current account deficit, BOP Nov. infrastructure data, fiscal deficit
Wednesday: Dec. manufacturing PMI
Friday: Dec. services PMI, Weekly forex reserves, bank loans
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