The 10-year benchmark 7.26% 2032 bond yield ended at 7.3726% on Monday. Yields rose 4 basis points (bps) to close at 7.3889% on Friday after the Reserve Bank of India (RBI) devolved a bulk of the 10-year bond on primary dealers at an auction. "Devolvement on Friday dampened investor sentiment, but we didn't see any major selling today because the overall activity was sluggish in the absence of fresh triggers," Yogesh Kalinge, vice-president at AK Capital Services, said. U.S. markets were shut on Monday for the Presidents' Day holiday, which resulted in lower participation of foreign investors, dealers said. Meanwhile, market participants await the minutes of the RBI's monetary policy meeting, due to be released on Wednesday, and of the U.S. Federal Reserve, due on Thursday. The market will look out for divergence in views of the RBI panel members on inflation, while the overall commentary will lend cues for the future interest rate trajectory, Kalinge said. The Fed has raised interest rates by 450 bps since 2022 and is widely expected to further raise them by 50 bps over the next three months. The RBI has raised the repo rate by 250 bps since 2022 to 6.50%. The Indian government will conduct its last bond auction of the current financial year on Friday, where yields are likely to move in the 7.36%-7.39% band. (Reporting by Bhakti Tambe; Editing by Sonia Cheema)
bhakti.rajendratambe.thomsonreuters.com@reuters.net Twiter: )) By Bhakti Tambe
MUMBAI, Feb 20 (Reuters) - Indian government bond yields
eased on Monday, after rising sharply in the previous session,
amid sluggish trading activity in the absence of fresh cues.
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