MUMBAI: Indian government bond yields were largely unchanged in early trade on Tuesday as traders eyed fresh cues, including minutes from the latest meeting of central banks in India and the United States due later in the week.

The benchmark 10-year yield was at 6.8536% as of 10:00 a.m. IST, compared to its previous close of 6.8653%.

“With most triggers behind us, traders will check out the language in the minutes of central banks, which would give more clarity on the thinking as far as the interest rate trajectory is concerned,” a trader with a primary dealership said.

The minutes of the Federal Reserve’s July meeting are due on Wednesday and the major focus is on the guidance about September rate cuts.

The bets of a 50-basis-point cut in the September meeting have completely vanished, but traders have fully priced in a 25-bps cut, according to the CME FedWatch tool.

Investors also eyed Fed Chair Jerome Powell’s commentary at the Jackson Hole symposium, scheduled for the end of the week. US Treasury yields eased marginally on Monday.

Meanwhile, the minutes of the Reserve Bank of India’s August meeting, at which it held rates and its policy stance, are due Thursday.

While most central banks are poised to ease policy, the RBI is focussed on taming food prices-led inflation.

The central bank, in its monthly bulletin on Monday, said it would have to adopt a more cautious approach to monetary policy if high food prices persist and threaten to spill over into more generalised price inflation.

India bond yields may ease tracking US peers; fresh cues eyed

While retail inflation fell to a near five-year low of 3.54% in July, it was largely due to a base effect.

New Delhi to raise 230 billion rupees ($2.74 billion) via sale of bonds on Friday, while seven states are set to raise 137.90 billion rupees via bond sales later in the day.