New Delhi, Sept. 3 -- India's 10-year government bond yield is expected to trade in the range of 6.50-6.60 per cent during September, according to a report by Bank of Baroda.

The report noted that the release of the second-half borrowing calendar will give a clearer picture of how securities are allocated across different maturity buckets, which could provide some relief for yields.

It stated "We expect India's 10Y yield to trade in the range of 6.50-6.60 per cent in the current month".

Another factor supporting yields, the report said, is the widening interest rate differential with the United States, as the U.S. Federal Reserve has embarked on a rate-cutting cycle, while the Reserve Bank of India (RBI) has chosen to maintain its poli...