Bond yields stuck in a range ahead of policy

Written by Reuters | Mumbai | Updated: Jan 23 2013, 07:45am hrs
Bond yields seesawed in a tight band on Tuesday as investors cautiously rebalanced portfolios ahead of the central banks policy review next week with comments from the finance minister barely aiding sentiment.

Indias economy will grow no better than 5.7 percent in the current fiscal year but will regain traction in 2013/2014, the finance minister said on Tuesday, as he sought to reassure international investors that the government remained committed to pro-growth policies and reforms.

The benchmark 10-year bond yield closed down 1 basis point (bp) at 7.85% after moving in a 7.83% to 7.87% band.