Indian bond yields rise as no OMO support yet

MUMBAI: Indian federal bond yields were sharply higher in early trades on Wednesday as the Reserve Bank of India held back from announcing a debt buy through open market operation on Tuesday to support this week's auction.

At 9:03 a.m., the 10-year benchmark bond yield was at 8.26 percent. It ended at 8.19 percent on Tuesday, 1 basis point higher from Monday's close.

The central bank normally announces its debt buy via OMO on Tuesdays, after the market closes.

Apart from Friday's bond sale to raise 120 billion rupees ($2.44 billion), the government will also sell 90 billion rupees of 91-day treasury bills and 40 billion rupees of 364-day treasury bills on Wednesday.