MUMBAI: Indian federal yields and swaps stayed down in lacklustre afternoon trade on Wednesday, after mirroring the fall in U.S. Treasury yields in early trade.
Bonds moved in a narrow 10 paise band as most dealers preferred to stay light ahead of Friday's $2.4 billion auction. Banks, the biggest holders of government debt, also stayed away ahead of their quarterly book closing, dealers said.
* At 1:10 p.m., the 10-year benchmark bond yield was down 2 basis points at 7.83 percent, having moved in a tight 7.83-7.84 percent range so far.
* Volumes were moderate at 77.05 billion rupees on the central bank's trading platform.
* Bond dealers will await for auction cut-offs for cues on the central bank's policy action, in the absence of any significant domestic trigger.
* India will auction 40 billion rupees each of 7.17 percent, 2015 bond and 8.08 percent, 2022 bond on Friday, as well as 30 billion rupees of 8.26 percent, 2027 bonds.
* The benchmark five-year swap was down 5 basis points at 6.99 percent and one-year swap unchanged at 6.43 percent.
