MUMBAI, Nov 23 (Reuters) – Indian government bond yields are set to open slightly lower on Wednesday, following a decline in longer-dated U.S. Treasury yields, but are expected to remain in a narrow band thereafter as investors remain cautious about the US federal government. The last minutes of the Reserve policy meeting.
The benchmark 10-year yield is expected to be in the range of 7.27% to 7.32%. The yield ended lower at 7.2852% on Tuesday.
National yields will follow U.S. Treasury yields with a downward bias in early trading, said Venkatakrishnan Srinivasan, founder and managing partner of debt advisory firm Rockfort Fincap.
U.S. Treasury yields eased on Tuesday amid thin trading and lingering concerns over more COVID-19 infections in China, as investors waited for clues on the outlook for inflation and monetary policy from Fed minutes expected later today.
In addition to global factors, an insufficient supply of long-term bonds in government debt as well as corporate bonds will continue to push large investors to invest their funds in long-term government securities. until they get other investment opportunities, Rockfort’s Srinivasan said. .
Meanwhile, oil prices rose on Tuesday after major exporter Saudi Arabia said OPEC+ was sticking to production cuts and may take further steps to balance the market.
Markets will continue to follow global signals in the absence of domestic triggers, dealers said. KEY INDICATORS: **Brent futures were up 0.1% at $88.50 a barrel, after rising more than 1% in the previous session **The US Treasury yield at 10 years was at 3.7578% and the two-year note at 4.5144% ** Reserve The Bank of India is to auction treasury bills worth 220 billion Indian rupees (2.69 billion dollars) ($1 = 81.7110 Indian rupees) (Reporting by Bhakti Tambe; Editing by Dhanya Ann Thoppil)