MUMBAI: Indian government bond yields were little changed in early trading on Tuesday, as market participants awaited a supply of debt from states later in the day.

The benchmark 10-year yield was at 6.7639% as of 10:00 a.m. IST, compared with its previous close of 6.7682%.

“State debt supply is on the heavier side, and even through subscription is not an issue, traders will remain a bit cautious until the cutoffs are out, while major trigger now could be the October-March borrowing calendar,” trader with a primary dealership said.

States aim to raise 344 billion rupees ($4.12 billion) through a sale of bonds, in what would be their last auction for April-September. The quantum is higher than 269.6 billion rupees according to the schedule.

New Delhi will sell bonds worth 340 billion rupees on Friday, including the liquid five-year and 15-year bonds. This transaction represents the final debt sale for the first half of the fiscal year.

Indian bond yields seen little changed with focus on domestic triggers

India is expected to announce its borrowing calendar for the October-March period later this week, and traders will also remain focused on treasury bill supply.

New Delhi aims to raise 14.01 trillion rupees through bond sales in the current fiscal year, and has already secured 7.40 trillion rupees in April-September. This leaves approximately 6.6 trillion rupees for the second half.

Meanwhile, the 10-year U.S. Treasury yield inched towards 3.80% in Asia hours after rising overnight as investors continued to price out near-term recession amid data showing increased price pressures that could slow the pace of the Federal Reserve’s easing cycle.

Elsewhere, China’s central bank announced broad monetary stimulus and property market support measures to revive its economy.