Bonds fall ahead of unveiling of new benchmark

The Rs 15,000 crore bond auction is due later in the session

Government bond yields rose slightly on Friday as traders shed positions ahead of the Rs 15,000 crore bond auction later in the session, which includes the sale of a new 10-year benchmark bond.

The most actively traded 8.28% 2027 bond yield was trading up 2 basis points at 9.09%.

Meanwhile, the soon-to-be-unveiled new 10-year bond was up 2 bps at 8.77% in the when-issued segment on the electronic trading platform.

Traders expect the new 10-year bond's cut-off to be around 8.80-8.83%.

The existing benchmark 10-year bond yield is up 2 bps at 9.10%.