India bond yields dip on value buying, fall in US peers

Indian government bond yields fell on Thursday amid value buying and a dip in U.S. peers, while traders awaited a bond buyback and domestic inflation due later in the day. The yield on the benchmark 10-year bond was at 6.3014% as of 10:00 a.m. IST, compared with its previous close of 6.3069%. "While we started positively, any rally in prices is difficult to sustain due to the current market environment," a trader with a state-run bank said. Bond yields rose since Friday after the Reserve Bank of India's (RBI) shift in stance to "neutral" disappointed investors as it signalled limited scope for further rate cuts.