Indian bond yields fall after RBI cancels open market sale of debt

Indian bond yields fell sharply in early trade on Monday after the central bank unexpectedly cancelled its sale of bonds via open market operation post market hours on Friday.

The Reserve Bank of India said on Friday it was withdrawing the OMO sale that was scheduled for Nov. 23 due to "recent market developments and based on a fresh review of the current and evolving liquidity conditions".

As of 0340 GMT, the benchmark 10-yr bond yield was down 8 basis points at 6.97 percent, and is expected to trade in 6.92 percent-6.97 percent range, a dealer at a large state-run bank said.

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