India debt sale results key; devolvement unlikely

Reuters Market Eye - Results of India's 150 billion rupee debt sale due later in the day will be key for direction as market participants gauge appetite for government bonds after a recent sharp sell-off.

Some traders say there is a risk of the benchmark 10-year bond, which has been recently issued, getting devolved to primary dealers should the central bank consider bids as too low. A trader says the bond may be devolved if yield bid breaches 7.48 percent.

"To a certain extent we see devolvement in the 2023 paper given less confidence in the market and lesser clues to reach upon the correct pricing on that bond," a senior dealer with a brokerage says.

The benchmark 10-year paper up 4 basis points on the day at 7.43 percent.

(Reporting by Swati Bhat)