Indian government bonds edged higher in early deals on Tuesday after a two-day selloff, while volumes remained muted ahead of the state debt supply and the U.S. rate decision due a day later.
The yield on the benchmark 10-year bond (IN063335G=CC) was at 6.3631% at 10:25 a.m. IST, compared with the previous close of 6.3700%.
Bond yields move inversely to prices.
Traders said the benchmark bond yield was unable to break past a key technical upside level, so there is some reversal in trend.
Investors took a break from selling, which was triggered by falling bets of an immediate rate cut following hawkish commentary from the Reserve Bank of India Governor Sanjay Malhotra.
On Friday, Malhotra said that the monetary policy will place greater emphasis on the outlook for growth and inflation, rather than their current levels.
“Traders are mostly on the sidelines till the RBI policy decision as there is no incentive for taking positions,”…
