By Khushi Malhotra
Indian government bonds dipped slightly early Monday as a selloff in U.S. treasuries outweighed optimism over potential support from the Reserve Bank of India.
The yield on the benchmark 10-year note (IN063335G=CC) was at 6.5236% as of 10:10 a.m. IST. It had settled at 6.5142% on Friday.
Bond yields move inversely to prices.
The 10-year U.S. treasury yield rose 4 basis points to 4.1336% in Asian hours on debt supply concerns.
Back home, market participants are seeking clarity on whether the RBI’s suspected secondary market bond purchases are intended as a yield signal or merely reflect replacement demand.
Investors from the “others” category, which includes the RBI, insurers, pension funds and corporates, net bought bonds worth 205 billion rupees ($2.31 billion) last week, the segment’s biggest weekly purchase in nearly five years, per clearing house data.
The RBI may have ramped up purchases last week as it held…
