India bond yields tad down at start of week with few triggers

Indian government bond yields were marginally lower at the start of the week, which has few fresh triggers for market participants to take cues.

The 10-year benchmark 7.26% 2033 bond yield was at 7.1384% as of 10:00 a.m. IST on Monday, after ending at 7.1556% in the previous session.

Though, sentiment is positive after strong demand at Friday’s auction led to breaking of key levels on the downside, constant offers from state-run banks will limit any further down move, a trader with a primary dealership said.

Bond yields dipped on Friday, after foreign banks likely bought a major share of debt at an auction, leading to a sharp fall in yields in the secondary market.

Traders said, with no major negative cues, there is some fresh interest being generated in Indian bonds, but the level of 7.12% may act as a crucial downside resistance level for the new benchmark 2033 bond.

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