Mumbai: Indian federal bond yields were steady on Wednesday, a day after the central bank kept key rates on hold and ahead of Rs230 billion of debt supplies this week.
At 9:15am, the benchmark 10-year bond yield was steady at Tuesday’s closing of 6.89%.
The Reserve Bank of India left its short-term rates and banks’ cash reserve requirement unchanged as expected on Tuesday and analysts polled after the decision said rates were likely to remain steady through 2009.
Three states will sell Rs20 billion and the central bank will auction Rs90 billion of bills on Wednesday. The government will sell Rs120 billion of bonds on Friday part of its Rs2.99 trillion borrowing plan for April-September.
Traders said they expect yields to remain rangebound and there is unlikely to be sharp movements in either direction.