Mumbai, Aug. 21 -- The US treasuries showed a lack of direction before closing roughly flat yesterday. The yield on the benchmark ten-year note which moves opposite of its price, edged down marginally to 4.29%. Market remained focussed on the interest rate outlook. The minutes of the Federal Reserve's latest monetary policy meeting showed that most officials still see the upside risk to inflation as the bigger threat to the economic outlook, although a couple were more worried about the downside risk to employment. A modest recovery in WTI Crude oil futures from two and half month lows also weighed on the bond markets.

Published by HT Digital Content Services with permission from Capital Market....