 "Government bonds, bond yield")
Indian government bond yields ended little changed on Tuesday as market participants awaited fresh cues as well as a debt sale in the holiday-truncated week.
India's benchmark 10-year yield ended at 7.1751%, following its previous close at 7.1790%. India's bond markets were shut on Monday and will be closed on Friday.
"There is uncertainty over the timing of the rate cuts and that is moving U.S. bonds but local bonds are in a wait-and-watch mode, waiting for strong triggers," said Debendra Kumar Dash, senior vice president of treasury at AU Small Finance Bank.
"The benchmark yield may remain rangebound till the Union Budget next week."
The 10-year U.S. bond yield stayed above 4.10%, as investors trimmed bets on the timing and pace of rate cuts by the Federal Reserve in 2024, following a slew of strong economic data in recent days.
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A string of economic indicators last week showed resilience in economic activity despite high interest rates, suggesting the Fed's shift to a less restrictive stance may not be imminent.
Traders have trimmed the odds of the first Fed rate cut by March to 44% from 81% on Jan. 12, while the probability of 150 basis points of cuts in 2024 has dropped to 47% from 91%, according to the CME's FedWatch Tool.
The Fed's next policy decision is due on Jan. 31.
Meanwhile, India's federal budget for the next financial year is due on Feb. 1.
The Indian government will target reducing the fiscal deficit as a percentage of GDP to 5.30% in 2024-25, from 5.90% in the current year ending March 2024, as per a Reuters poll.
Earlier in the day, 13 states raised 232.80 billion rupees ($2.80 billion) via bond sale and the auction cut-offs came in line with expectations.
Market participants now await the central government's weekly debt sale. New Delhi aims to 330 billion rupees via bonds, which includes 160 billion rupees of benchmark notes.
