MUMBAI: Indian government bond yields may dip at open on Monday, tracking a decline in US rates, while traders wait for data on how Asia’s fourth-largest economy fared in the last quarter due later in the week.

The benchmark 10-year bond yield is likely to move between 6.83% and 6.86%, compared with 6.8470% in the previous session.

Over the last two weeks, the yield is up two basis points. On Friday, it had inched past 6.85%, a key near-term level. Overall, the bias “is definitely” for yields to move higher, a fixed income trader at a bank said.

However, the pullback in US yields will be “welcome” and will likely “pull in a few buyers”.

The 10-year US Treasury yield dropped six basis points in Asia trading, after US President-elect Donald Trump tapped prominent investor Scott Bessent for the position of US Treasury secretary.

Analysts reckoned that his nomination was a relief, and it reduced the chances of severe tariffs which are expected to be inflationary.

India’s 10-year bond yield hits 31-month low; traders eye debt supply

Meanwhile, India’s July-September growth data is due Friday.A Reuters poll of economists pegged India’s economic growth at 6.5%. The data may potentially shape expectations on the Reserve Bank of India’s interest rate outlook.

The RBI’s next policy decision is due on Dec. 6.

The US personal consumption expenditure (PCE) data, due Wednesday, too, will be focus this week to gauge whether the Federal Reserve is likely to cut rates next month or not.