Indian bonds seen ranged; borrowing calendar awaited

MUMBAI: Indian bond yields are expected to tread water on Thursday, as traders await the government's borrowing calendar next week for the fiscal year 2012/13 for direction.

The calendar is likely to be front loaded, with about 70 percent of the borrowing scheduled in the first half of the fiscal year starting on April 1, traders said.

The government said in its 2012/13 budget it would borrow 5.7 trillion rupees ($112.4 billion) from the market, higher than the expected 5.3 trillion rupees.

The 10-year benchmark bond yield should open around 8.38 percent and move between 8.37 percent and 8.42 percent, with a three-day weekend ahead keeping participants on the sidelines, traders said. It closed down 2 basis points at 8.39 percent on Wednesday.