Indian government bond trading was hit by a technical snag in the initial hour on Wednesday, impacting trading volumes and holding yields in a narrow band ahead of the release of the US Federal Reserve's November meeting minutes.
The benchmark 10-year government bond yield was at 7.2809 per cent as of 0457 GMT, after closing at 7.2852 per cent on Tuesday.
There was an issue with the Clearing Corporation of India (CCIL), the online platform that provides clearing and settlement for transactions for securities. Most traders were unable to log in, a trader at a state-run bank said.
The issue was resolved with normal trading resuming at around 0445 GMT, traders said.
The total traded volume on CCIL was around 7.8 billion, just a third of the usual daily volume at this hour, a dealer with a private bank said.
"The price discovery will not be efficient with such low volumes," he added.
Yields are expected to remain in the narrow range of 7.28 per cent-7.32 per cent through the day.
Investors are keenly awaiting the minutes of the Fed meeting to help gauge the future interest rate trajectory and the outlook on inflation.
Fed last raised the rate by 75 basis points but slowing inflation in the US has eased fears of more aggressive rate hikes going ahead.
Deccan Herald is on WhatsApp Channels| Join now for Breaking News & Editor's Picks