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

The government bond yields are expected to trade largely unchanged at the beginning of the last week of 2023 as traders may remain on the sidelines, while markets will assess the minutes of the central bank's latest meeting, which focused on inflation management.The 10-year benchmark bond yield is expected to move in the 7.17 per cent -7.21 per cent range on Tuesday, after closing at 7.1862 per cent in the previous session, a trader with a private bank said.The markets were shut on Monday for Christmas."There was no major surprise in the minutes and hence we should not see any adverse move in yields today, with the focus remaining on the state debt sale, while volumes may remain shallow," the trader said.The nation's monetary policy committee (MPC) will remain vigilant of inflation risks, with the overall outlook remaining clouded by volatile and uncertain food prices, members of the committee said in the minutes of the 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. The MPC, which consists of three Reserve Bank of India members and three external members, kept the repo rate unchanged at 6.50 per cent for the fifth consecutive meeting earlier in December.The inflation trajectory remains relatively uncertain.A unanimous hold for the December meeting shows members remain in a wait-and-watch mode, but with a softening in their 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 the day, in the last auction for the quarter.The US yields remained lower with the 10-year yield near the 3.90 per cent mark in Asian hours, after data showed inflation as measured by the personal consumption expenditures (PCE) price index, fell 0.1 per cent last month after being unchanged in October.(With Reuters Inputs)

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

The 10-year benchmark bond yield is expected to move in the 7.17 per cent -7.21 per cent range on Tuesday

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