India bond yields barely changed as traders eye fresh cues
The yield on the benchmark 10-year bond was at 6.3148% as of 10:40 a.m. IST, compared with its previous close of 6.3134%.
The 10-year US Treasury yield was also steady at 4.2847% in Asian hours, after closing at 4.2830% in the previous session. Traders said they are holding back from taking positions after a disappointing debt auction on Friday triggered a selloff.
'We will closely watch the US Treasury yields and RBI's (Reserve Bank of India's) liquidity moves to gauge further direction; till then the volumes should remain muted,' a trader at a private bank said.
'We may see some rally in prices in the second-half if there is demand from banks for quarter-end purchases.'
Indian bond yields inch up ahead of large debt supply
Market participants will also focus on demand for state debt this week, after a lower-than-expected borrowing plan by states for July-September.
Indian states are aiming to raise 2.87 trillion rupees ($33.6 billion) via bonds in July-September, compared to market expectations of borrowings of around 3 trillion rupees.
Meanwhile, foreign investors stepped up purchases of Indian government bonds last week, and posted their biggest buying in three months.
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