2012.05.30 04:57:56 MARKET TALK: India Bonds Likely Lower On Absence Of RBI Buyback

0257 GMT [Dow Jones] India government bonds are likely to open lower due to the absence of a buyback announcement from the RBI Tuesday, says a dealer with a private brokerage. The 8.79% 2021 bond yield is likely to open at 8.53% vs 8.52% at Tuesday's close and is tipped to trade in a 8.52%-8.55% band through the session. It closed at 101.73 in price terms. However, the dealer says the absence of a buyback announcement doesn't come as a complete surprise as liquidity conditions have improved. Moving ahead, the RBI is likely to sterilize any intervention in the forex market through buyback auctions or secondary-market bond purchases, which will support bond prices, he adds.(sudeep.jain@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 29, 2012 22:57 ET (02:57 GMT)