MUMBAI, July 28 (Reuters) – Indian government bonds fell in early deals on Monday, as traders nervously sold debt ahead of rate decisions by the United States and Indian central banks, and as the market lacked fresh positive cues to spur buying.
The yield on the benchmark 10-year bond was at 6.3603% as of 10:35 a.m. IST, compared with Friday’s close of 6.3505% and up nearly 8 basis points since last week.
Bond yields move inversely to prices.
Indian bond yields continued to rise after Friday’s selloff, when Reserve Bank of India Governor Sanjay Malhotra’s commentary in an interview with the Financial Express trimmed rate cut bets in the market.
“Investors expecting an August rate cut are shedding positions after the Governor’s comments on Friday, so the selling pressure is expected to continue,” a trader at a state-run bank said.
“6.38% is a key technical level for the 10-year benchmark this week.”
Traders will closely eye…
