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MUMBAI - Indian government bond yields ended little changed on Monday after falling earlier in the session, while traders continue to await major market-moving triggers.
The benchmark Indian 10-year yield ended at 7.0601%, after closing at 7.0572% in the previous session.
Indian bond markets continue to trade in a range in the absence of any major triggers, Puneet Pal, head - fixed income at PGIM India Mutual Fund, said.
"The yield curve has flattened and can continue to stay flat given the positive demand-supply dynamics and (interest) rate cut prospects going into FY25."
Indian bond yields opened lower after U.S. yields eased on Friday, with the 10-year U.S. yield falling to levels last seen three weeks ago. This came after U.S. manufacturing data slumped further in February.
The 10-year U.S. yield fell 7 basis points on Friday and was last at 4.2052% during Asian hours.
The odds for a Fed rate cut in May have improved to 28%, up from 24% last week, according to the CME FedWatch tool.
The focus for the week will be Fed Chair Jerome Powell's testimony to lawmakers on Wednesday and Thursday and February U.S. jobs data on Friday.
"The global monetary tightening has ended and we are in for a long pause on rates both domestically and internationally," PGIM's Pal.
In February, the Reserve Bank of India kept rates unchanged for a sixth consecutive time and reiterated its commitment to meet its 4% inflation target on a sustainable basis.
Meanwhile, lower-than-scheduled debt supply from Indian states this week is aiding market sentiment, which is further enhanced by the fact that central government supply has ceased for the year, traders said.
Indian states aim to raise 279.81 billion rupees ($3.38 billion) through the sale of bonds on Tuesday , against 381.66 billion rupees on the calendar.
($1 = 82.8740 Indian rupees)
(Reporting by Bhakti Tambe; Editing by Sonia Cheema)