Indian Bond Yields Stagnate as Traders Await Catalysts

 Indian government bond yields remained stagnant in the early session on Wednesday, as traders kept a close watch for fresh market triggers.

The benchmark yield, IN071833G=CC, hovered at 7.1381% as of 09:05 a.m. IST, slightly up from the previous day's close of 7.1284%.

According to a trader affiliated with a primary dealership, market movement is expected to be subdued today as participants await cues from upcoming buyback and debt sales.

India is set to conduct a buyback of bonds maturing within the current fiscal year, amounting to 400 billion rupees ($4.79 billion) on Thursday, followed by bond sales worth 200 billion rupees on Friday.

Meanwhile, the 10-year U.S. Treasury yield, US10YT=RR, continues to linger below the critical 4.50% threshold, amidst speculation of nearly two rate cuts in 2024.

Traders note that while sentiments have been buoyed by declining oil prices and Treasury yields, breaking the 7.10% yield mark will pose a challenge.