Govt bond yields steady as new 10-year cut-off meets expectations

Government bond yields remained steady as the cut-off yield for the new 10-year bond was set at 6.48%, aligning with market expectations. The government sold Rs 32,000 crore worth of bonds, with the benchmark yield at 6.51%. Factors such as excess supply, fading rate cut expectations, and investor positioning are influencing yields. The market will look for cues from upcoming state bond auctions, with states planning to borrow up to Rs 2.81 trillion in the third quarter.