(Updates to close)
By Anurag Joshi
MUMBAI, April 30 (Reuters) - Indian federal bond yields
extended their fall on Wednesday, on expectation that interest
rates may have peakedand traders awaited the U.S. Federal
Reserve's rate decision, expected later in the day.
The 10-year federal bond yield <IN082418G=CC> ended at 7.92
percent, off an early trough of 7.90 percent that was its lowest
since the security was issued on April 21. It had closed at 7.94
percent on Tuesday.
Volume was heavy at 66.45 billion rupees ($1.6 billion) on
the central bank's trading platform.
At its policy on Tuesday, the Indian central bank raised
banks' reserve requirement by 25 basis points to 8.25 percent
with effect from May 24, but left interest rates unchanged. See
[ID:nBOM262007]
"Yes, the market believes the rate cycle has peaked," a
trader with a U.S. investment bank said.
Traders also awaited the U.S. Fed's assessment of the world's
largest economy at the end of a two-day meeting on Wednesday. The
Fed is expected to cut interest rates by 25 basis points.
($1 = 40.5 rupees)
(Editing by Ranjit Gangadharan)
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Keywords: MARKETS INDIA MONEY/