India bonds steady as traders await fresh triggers
The yield on the benchmark 10-year bond was at 6.2926% as of 10:10 a.m. IST compared with Friday's close of 6.2947%.
Trading volumes were muted at the start of the week, but investors will keep a watch on US Treasury peers, which inched lower in Asian hours.
The 10-year US yield was at 4.3319%, slightly lower following Thursday's rise, after data showed the US created more jobs than expected in June. Brent crude futures lost 0.72% to $67.86 per barrel.
'Foreign investors have been buying Indian bonds lately, so we are closely watching that for further direction,' a trader at a primary dealership said.
'Public sector banks have been selling for some time, so someone has to absorb that, and if foreign investors continue purchasing, we can see some rally in bonds.'
Still, bonds should trade in a range, with the 10-year yield bound between 6.28%-6.32%, the trader added.
India bond yields rise tracking US Treasuries, end flattish for week
Last week, foreign investors stepped up purchases of Indian government bonds under the Fully Accessible Route (FAR).
The investors net bought 87 billion rupees ($1.02 billion) of bonds under FAR during the period, CCIL data showed.
Meanwhile, state-run banks net sold bonds worth about 143 billion rupees last week.
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