Government bond yields to remain unchanged at start of final week of 2023

government bond yields are expected to tre largely unchanged at beginning of last week of 2023 as trers may remain on sidelines, while markets will assess minutes of central bank's latest meeting, which focused on inflation management.

10-year benchmark bond yield is expected to move in 7.17 per cent -7.21 per cent range on Tuesday, after closing at 7.1862 per cent in previous session, a trer with a private bank said.

markets were shut on Monday for Christmas.

"re was no major surprise in minutes and hence we should not see any verse move in yields today, with focus remaining on state debt sale, while volumes may remain shallow," trer said.

nation's monetary policy committee (MPC) will remain vigilant of inflation risks, with overall outlook remaining clouded by volatile and uncertain food prices, members of committee said in minutes of December policy meeting, released on Friday.

Retail inflation rose to 5.55 per cent in November, its fastest pace in three months, due to higher food prices. MPC, which consists of three Reserve Bank of India members and three external members, kept repo rate unchanged at 6.50 per cent for fifth consecutive meeting earlier in December.

inflation trajectory remains relatively uncertain.

A unanimous hold for December meeting shows members remain in a wait-and-watch mode, but with a softening in ir earlier hawkish bias, Barclays said.

Meanwhile, states have an aim to raise 248.49 billion rupees ($2.99 billion) through a sale of bonds later in day, in last auction for quarter.

US yields remained lower with 10-year yield near 3.90 per cent mark in Asian hours, after data showed inflation as measured by personal consumption expenditures (PCE) price index, fell 0.1 per cent last month after being unchanged in October.

(With Reuters Inputs)