India bonds little changed as traders await fresh cues
The yield on the benchmark 10-year bond was at 6.3055% as of 10:25 a.m. IST, after closing at 6.3069% on Tuesday.
Bond yields move inversely to prices.
'Bonds (yields) are expected to oscillate between 6.29%-6.32% unless there are some further forecasts on inflation or GDP, which will give further clarity on (the) rate easing cycle,' a trader at a foreign bank said.
New Delhi will sell bonds worth 360 billion rupees ($4.17 billion) on Friday, including 300 billion rupees of the benchmark bond, taking the outstanding issuance to 1.2 trillion rupees.
There could be a moderate sell-off before the auction as traders free up space in their books to participate, traders said.
Investors will also watch out for the Federal Reserve's policy decision on July 30 for signals on the domestic interest rate trajectory.
Most investors expect the Fed to keep rates unchanged, while any commentary from the central bank's chief would be key, traders said.
The 10-year U.S. Treasury yield added 3 basis points in Asian hours to 4.36%, after falling for three days, dampening sentiment in the domestic market.
The U.S. Treasury yields spiked after fresh data showed retail sales in the world's largest economy rebounded in June, supporting the Fed's hesitance in resuming policy easing.
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