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Indian bond yields steady; budget key
February, 23rd 2010

Indian bond yields were largely steady in early deals on Tuesday as traders were awaiting the federal budget for cues on the government's borrowing plan.

* At 9:11 a.m., the yield on the benchmark 10-year bond IN10YT=RR was at 7.82 percent from Monday's close of 7.83 percent, which was its lowest since Feb. 11.

* C. Rangarajan, the prime minister's economic adviser, had said the government's market borrowing in 2010/11 (April/March) was likely to be near or slightly lower than in 2009/10. The budget will be released on Friday.

* The government is expected to gradually wind down its growth-supporting stimulus measures over 2010/11, but will still need to borrow a record amount from the market, a Reuters survey of economists showed.

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