MUMBAI: Indian federal bond yields and swap rates were largely steady on Tuesday as traders awaited further cues from the outcome of the U.S. Federal Reserve's meeting later in the day for any hint of further easing.
* Focus was on the wording of the Fed's policy statement and suggestions it is making a transition from targeting already low interest rates to targeting its own balance sheet.
* At 2:52 p.m., the 10-year yield was at 7.99 percent, up 2 basis point on the day. The bond moved in a narrow 7.98-7.99 percent range.
* The benchmark five-year swap rate was down 2 basis points at 7.08 and the one-year swaps rate was down 1 basis point at 6.36 percent, Thomson Reuters Data showed.
* Traders said they were also eyeing this week's 110-billion-rupee bond sale results on Friday for cues on the market demand for debt.
* The October-March bond auction schedule was also awaited at month-end.
* Reserve Bank of India Governor Duvvuri Subbarao, who last week raised interest rates for the fifth time this year in order to battle surging prices, said on Monday that inflation will determine the future course of monetary policy action.
