Indian bonds consolidate as 10-year bond yield tops 6.75%
The benchmark 10-year yield was at 6.7401% as of 10:00 a.m. IST, compared with its previous close of 6.7447%. Earlier in the day, it had hit 6.7530%, its highest since January 20.
«There is literally no interest from traders to go either side, and hence we may see the benchmark yield consolidating around the key 6.75% level until any major trigger is witnessed,» a trader with a primary dealership said.
Trading interest in longer-duration government bonds has diminished, with Indian states set to sell a large quantum of debt this month ahead of the financial year-end.
States raised 505 billion rupees ($5.80 billion) through a sale of bonds on Tuesday, with cutoff yields higher than anticipated, indicating weak demand.
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