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India 10-year yield edges up on shorter OMO sales

India government bond yields rose Tuesday as the central bank’s shorter-tenure bond sales increased market supply and retail inflation at a 20-month high lifted yields; the 10-year yield neared a 7.14% resistance level.

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Government bond yields rose on Tuesday after the central bank announced bond sales in the shorter tenure segment late on Friday, increasing supply in the bond market. Retail inflation at a 20-month high also pushed yields higher, as it stoked expectations of potential policy action. 14% resistance level in Mumbai.