Indian government bonds are expected to see a marginal uptick after a two-day holiday break, tracking a rally in U.S. Treasuries as there is no fresh debt supply from the central government this week.
The yield on the benchmark 10-year note may move between 6.48% and 6.52%, a trader at a private bank said, after closing at 6.5040% on Monday. Bond yields move inversely to prices.
Indian debt markets were shut on Tuesday and Wednesday due to local holidays.
“We could see some positive momentum, but again 6.48%-6.49% may remain intact, as there will be shallow volumes, and as such nothing largely positive for test of new lows for the yields,” the trader said.
U.S. Treasury yields slid for a third straight session on Wednesday, on decent demand at a debt auction, and as investors anticipate the Federal Reserve will cut rates next week.
The 10-year U.S. yield stayed below the crucial 4% mark and dropped close to its lowest…
