Indian federal bond yields are expected to be rangebound on Monday, a day before a much-awaited policy review, but higher U.S. yields and lack of clarity on the hold-to-maturity (HTM) limit hike front for banks could weigh. * The 10-year benchmark bond closed at 7.45 percent on Friday, after rising to 7.47 percent, which was its highest since Sept. 11. It had ended at 7.38 percent on Thursday.
* Dealers said some amount of bargain buying in early trade could push yields marginally lower.
* Traders are mixed about whether the central bank would announce the much-anticipated hike in the HTM limit for banks' debt holdings, which would allow them to keep more bonds in a separate account, free from mark-to-market risks.
* "There is no compulsion over the Reserve Bank of India right now to raise the HTM cap, and finance ministry is not pushing for it," a finance ministry official, who did not wish to be named, told Reuters last week. [ID:nBMA006210]
* India's central bank will keep its benchmark lending and borrowing rates on hold in its quarterly policy review on Oct. 27, a Reuters poll showed earlier this month. [ID:nBOM432800]
* U.S. Treasury debt prices slipped on Friday after news that home sales surged last month and ahead of next week's record-large wave of government notes supply. Reuters
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