2012.06.07 11:58:51 MARKET TALK: Indian Bonds Up; 10-Year Yield Floor At 8.33%-Dealer

0958 GMT [Dow Jones] Indian government bonds are trading higher, driven by underlying positive sentiment and rising expectations for a rate cut, says a dealer with a privately-run bank. The most-traded 9.15% 2024 bond is at 105.82 vs 105.66 at Wednesday's close while the benchmark 8.79% 2021 bond is at 102.80 compared to 102.68 at last close. "The market expects a weaker factory output print next week while inflation too may come in lower as economic growth has slumped. Both are bond-positive," she says. Bonds may remain rangebound in the session and until the result for the central bank's INR150 billion bond sale Friday. The dealer tips the yield on the 10-year paper in a 8.33%-8.37% range vs currently at 8.35%. (nupur.acharya@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires June 07, 2012 05:58 ET (09:58 GMT)