India bonds inch lower, test key level ahead of RBI rate decision
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Indian government bonds dipped slightly in early deals on Tuesday, testing a key technical level, while traders awaited the Reserve Bank of India's policy decision due on Wednesday. The yield on the benchmark 10-year bond was at 6.3300%, as of 10:30 a.m. IST, compared with Monday's close of 6.3179%. While some market participants are expecting another interest rate cut by the RBI after U.S. President Donald Trump imposed steep tariff on goods from India, others are anticipating dovish signals in Governor Sanjay Malhotra's speech, which led to a rally in bond prices on Monday. "The market is expecting a dovish indication in the policy and there will be built up for October cut," said Umesh Tulysan, MD at Delhi-based Sovereign Global Markets. The central bank changed its stance to "neutral" while cutting the benchmark rate by 50 basis pointsat its June meeting. Live Events Meanwhile, the State Bank of Ind...