The yields of Indian federal bonds remained almost unchanged as investors wait of the review by India's central bank, the reserve Bank of India (RBI) to determine actions in the market.

The 10-year benchmark bond yield was recorded at the level of 8.21 percent, down 1 basis point this morning at the time of reporting. A volume of worth 30.30 billion rupees were traded on the RBI's electronic trading platform, which is below the average of about 40 billion rupees traded in the first two hours.

According to dealers, the yields will only move slightly until the RBI's policy meeting, in which the central bank will decide if it wants to increase its key interest rates. The finance ministry and the RBI has hinted in recent days that the rates might not be reduces.

Even as there was some buying after the announcement of a 120 billion rupee bond buyback but the growth slowed as dealers were not hopeful of a rate cut. They believe that the 10-year yield could rise to 8.25 percent today as they prepare for 140 billion rupees of bonds to be auctioned on Friday.

The RBI is to buyback 8.07 percent 2017, 7.80 percent 2021, 8.08 percent 2022 and 8.28 percent 2032 bonds from the market on Friday. Meanwhile, the five-year swap rate was recorded at 7.25 percent and one-year swap rate was at 8.05 percent.