Indian government bond yields ended lower on Wednesday amid a pullback in U.S. Treasury yields, while traders still assessed the pace of foreign inflows into debt after domestic securities were included in a global index.
The benchmark 10-year yield ended at 6.9987%, following its previous close of 7.0112%.
The 10-year bond yield slipped modestly ahead of the inclusion, but profit-taking interests drove yields back above 7% by end trade, Radhika Rao, executive director and senior economist at DBS Bank, said in a note.
Investors continue to gauge the pace of foreign inflows into Indian government bonds over the next few days after an underwhelming response so far, since the inclusion of local debt in the JPMorgan index on June 28.
Foreign investors have bought bonds under the Fully Accessible Route, which are now a part of the index, worth only 37.7 billion rupees ($451.42 million) on a net basis in first three days of the index…
