Indian bond yields seen up on supply worries

MUMBAI: Indian federal bond yields are expected to open higher on Monday after the central bank said on Friday the government would borrow an additional 400 billion rupees ($7.53 billion) in the current fiscal year ending in March.

The net additional borrowing, including through short-dated securities, is more than the market expected, traders said.

The 10-year benchmark bond yield could open around 8.61 percent and climb to as much as 8.65 percent, they said. On Friday, it closed at 8.56 percent.

Traders said the RBI is likely to conduct more open market operations, which would keep a lid on yields.