The market is closely watching key US data and Federal Reserve's rate action as these will be directional cues
Fed Chair Jerome Powell had last week delivered his strongest signal that interest rates will come down in September
The benchmark 10-year yield is likely to move between 6.84 per cent and 6.87 per cent
The benchmark 10-year yield is likely to move between 6.85 per cent and 6.88 per cent
The RBI last week kept the key interest rate unchanged, retaining its focus on bringing inflation down
Yields on 30-year bonds have dropped more than 40 basis points this year to 7.04 per cent on Friday
South Asian nation's star economy and improving business environment, at a time of slowing growth in China, has made Indian assets investor darling
The latest data has led to a repricing of interest rate cut expectations, with the probability of a 25-basis-point rate cut by the Federal Reserve in September
Powell's testimony before the Senate on Tuesday and the House on Wednesday could give investors more clues on the likely direction of rates
Any further decline was unlikely as the market awaited debt supply on Friday, with New Delhi aiming to raise 280 billion rupees ($3.35 billion)
At present, the spread between the 10-year benchmark bond yield and similar tenor state debt yield is around 31-35 basis points
Investors have raised bets that former President Donald Trump may out beat US President Joe Biden at the elections due in November, especially after last week's debate
India inclusion in JP Morgan Bond Index: The inclusion process will begin on June 28, 2024 and will be completed over a period of 10 months, till March 2025
India's benchmark 10-year yield is likely to move in a 6.95 per cent-6.99 per cent range
US bond yields rose after the economy created far more jobs than expected in May
Focus has shifted to US bond yields and oil prices, with the market digesting Prime Minister Narendra Modi's smaller victory margin for a third term.
On the other hand, if BJP fails to win the elections, Nomura expects outflows from the forex channel to be over $30 billion in a couple of weeks.
Foreign investors are increasingly showing a preference for India's sovereign debt over China's to reap gains from the nation's faster economic growth
Indian government bonds are set to be included in the JPMorgan Emerging Market local currency debt index from June 28
Bond yields have eased over the last few sessions, after the Reserve Bank of India's board last week approved the transfer of a record 2.11 trillion rupees as surplus to the government