Indian bonds fall,but state-run banks start buyinghttps://indianexpress.com/article/news-archive/web/indian-bonds-fall-but-staterun-banks-start-buying/

Indian bonds fall,but state-run banks start buying

India's benchmark 10-year bond yield is more range-bound after the early jump on the back of strong US jobs data.

India’s benchmark 10-year bond yield is more range-bound after the early jump on the back of strong US jobs data.

The 10-year yield at 7.58 percent,up 8 basis points (bps) on the day. It rose to a two-month high of 7.63 percent earlier in the session.

Traders expect the 10-year bond yield to hold between 7.55 to 7.61 percent during the session.

“State-run banks have been on the buy side,which is providing temporary support. We should stay largely range-bound for the rest of the day,” says a senior dealer with a foreign bank.

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Rate cut hopes in the July policy have virtually disappeared after the rupee rout,with funding of the current account deficit being a key concern.