Bond yields edged up on Wednesday as investors continued to trim positions heading into the policy next week with RBI governor’s comments from last week continuing to dent bond prices.
RBI published last week's speech of governor D Subbarao on its website earlier in the day. The speech was picked up by some media agencies and RBI chief's comments on inflation caused yet another round of sell-off.
The benchmark 10-year bond yields closed up 1 basis point at 7.86% after moving in a range of 7.83% to 7.88% in the day.
Total volumes on the central bank's electronic trading platform were lower at R29,805 crore.
The market is broadly positioned for a 25 bps cut in key rates at the RBI policy review on Tuesday with the guidance provided by the central bank being key in setting the medium term direction.